Posts Tagged ‘funding for college’

Where to get money for college

Posted October 19, 2008 by Bernz

finaidThe plight and turmoil of the U.S. economy has caused me to think about our children’s’ future. It’s scary right now to try to even comprehend what it will be like. If you once thought you’d borrow funding for college that could be out. Maybe you were planning on using your retirement funds—at least some of them. Perhaps that’s no longer a good solution either. Thinking about selling your kidney?

If none of these alternatives seem like viable options, and I really hope you weren’t seriously thinking about that kidney thing, then you might want to investigate starting a Tax-advantaged college savings account. Basically this is a savings account you open at a bank, credit union, or any financial institution that provides principal security but pays a low interest rate. Typically these accounts limit the number of transactions you can have before your institution charges a fee.

Another option (one that provides higher interest but has no guarantee of principal) is a money market mutual fund. This might be a more attractive savings option because while both a savings account and a money market mutual fund let you access your money quickly, with the later, you actually have an investment vehicle and the returns you receive are based on federal interest rates.

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