In previous piggy bank series articles, we touched on the two most common savings vehicles for education needs – custodial accounts and 529 college savings plans. While both of them offer simplicity, low costs, and valuable tax savings, they lack the flexibility desired by certain families. For example, parents may prefer their child to have […]
The Piggy Bank Series: 529 College Savings Plans
When it comes to saving for college, it feels like no matter what we do, the cost of tuition seems to be out of reach. As evident in Graph 1 below, over the past forty years, college tuition has risen more than twice as fast as the Consumer Price Index (CPI), averaging about 6.6%, compared […]
The Piggy Bank Series: Custodial Accounts
Before I had any idea what money was about, I was given a white, ceramic piggy bank. The object itself was absolutely boring, yet I loved the idea of inserting metal objects (coins) into the “tummy” of the pig, hearing the clank, and knowing that they were in a safe place. Yes, cash was pretty […]
A Quick Comparison Between the College Savings Plan & the New ABLE Plan
The ABLE Act (an acronym for Achieving a Better Life Experience) was passed in 2014 to help individuals with disabilities and their families better deal with the expenses that are an essential part of daily living, without negatively affecting their eligibility for public assistance. Many states have since created programs to benefit these folks, which are […]
