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Good to Know
·UNest·Financial Literacy
As parents, we want the best for our children. A good education is the key to their success.
The cost of college tuition is climbing at 6% a year.
This is what the cost of attending university will look like 18 years from now:
As a result, student debt in the US has reached a historic level of $1.4 trillion!
Why Start Saving Today?
The earlier you save, the more your money will grow.
Your child will not be burdened with a huge student loan.
You won't need to dip into your retirement savings or use other assets to pay for it.
Here is some data to consider:
- Only 0.3% of students will receive a full-ride scholarship that will cover all their costs. The odds are as slim as winning the lottery.
- 8% is a typical interest rate for student loans. You may pay over $100k in interest on student debt.
- **25% **of parents end up paying for children's education out of their own retirement savings, sacrificing their financial security.
- Students with college savings are 7 times more likely to attend college than those who don't save.
Saving on Taxes Means Faster Growth of Your Money
Saving on Taxes Means Faster Growth of Your Money
Assuming 8% return, 30% tax rate and $200 monthly investment.
College Savings Account
Grow your money with UNest without having to pay taxes
- Tax-Free Growth , Your earnings are not subject to federal income taxes as long it remains in the plan. This can help your account grow faster, since all your earnings will be reinvested.
- Tax-Free Withdrawals , No taxes are due to the federal government when money is withdrawn for qualified expenses.