Financing these costs for one or more children is going to take planning and, most importantly, disciplined savings. Tax-advantaged “529 College Savings plans are the savings vehicle of choice and offer important advantages over other options. A $3,000 annual contribution, beginning at birth, to a growth-oriented 529 plan should pay for one child s in-state public education, and a $7,500 annual contribution for a four-year private education. A later start means higher annual contribution amounts. Large Tax-Free Contributions: Parents, grandparents, other relatives and even friends can contribute up to $12,000 per year per child, tax-free, to a 529 plan.
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