Category

College

Jul 13
Love0

The 411 On 529 Savings Plans

By College, Money Management, Podcast, Saving No Comments

For years college savings accounts could only be used for qualified college education expenses. Now, 529 college savings plans can be used to pay for private school.

“The tax change that passed in December 2017 included legislation to expand the use of 529 plans to cover tuition for K-12 education.” –

Although these college savings plans are supposed to be used for your child’s higher education, the money saved in these accounts can now be used for different situations.

In this episode of Financial Fornicating with Madam Money Podcast, Financial Advisor Kevin Matthews II, of BuildingBread.com, shares

  • What a 529 Savings Plan is
  • 529 Savings Plan Pros and Cons
  • The new changes to 529 Tax Code and how it may benefit you and your family
[ctt template=”8″ link=”bfwUT” via=”no” ]Be sure to contact your State 529 Savings Plan Administrator to confirm Federal changes apply to your State Taxes. – @BuildingBread[/ctt]

About Kevin Matthews II

Kevin L. Matthews II is a licensed financial advisor, author, and speaker. Kevin has helped hundreds of individuals plan for their retirement and send their children and grandchildren to college. In 2010, Kevin launched BuildingBread, to inspire millennials to set, simplify and achieve any financial goal. Kevin regularly speaks to young adults across the country and has been featured in several media publications and productions including The Wall Street Journal, The New York Times, LearnVest, NerdWallet, and many others.

Thank you for listening to the “Financial Fornicating with Madam Money” Podcast!

We appreciate you listening to the Financial Fornicating with Madam Money Podcast. Please share your comments or questions about this episode below or at info@madammoney.com. Also, please share this episode using the social media buttons.

You can also listen to the Financial Fornicating with Madam Money Podcast on iTunes and Google Play Music! Please share your honest feedback as Ratings and Reviews are very helpful and greatly appreciated!

Mar 15
Love0

3 Ways to Save for College

By College, Money Management, Saving No Comments

By guest contributor Sallie Mae®

As you start to save for college, consider three of the most popular ways to set up a college fund: 529 College Savings Plans, UGMA/UTMAs, and Education Savings Accounts (ESAs).

Each one offers different features and benefits. Other methods include high-yield savings accounts, life insurance, and mutual funds. A financial advisor can help you choose the best one for your needs.

529 College Savings Plan

State-sponsored 529 plans are one of the most popular ways to save for college. You can invest in any state’s 529 plan regardless of your residence, but check with your own state’s plan first. Most offer special tax advantages for residents. 529 plans give you additional benefits such as:

  • The account owner has full control over the account, so you can be sure the money is used for college.
  • Your assets can be used for any qualified higher education expense, including tuition, fees, and certain room and board costs.
  • Earnings grow tax deferred and are free from federal income tax when used for qualified higher education expenses.1
  • Most plans offer gifting programs, which allow friends and family to celebrate milestones by making contributions directly into your account.

UGMA/UTMA

An UGMA/UTMA (which stands for The Uniform Gift to Minors Act/Uniform Transfers to Minors Act) is a custodial account usually set up at a bank. The assets in the account are designated for the child, but do not have to be used solely on education. Benefits include:

1 Earnings on non-qualified withdrawals are subject to federal income tax and may be subject to a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

Originally posted on March 19, 2015.

Mar 14
Love0

More than 3 Million Scholarship Opportunities for Students through Sallie Mae® Scholarship Search

By College, Money Management, Saving No Comments
[us_separator type=”invisible” icon=”fas|star”]

Scholarships and grants are used for 31% of college costs, according to How America Pays for College 2014.  Yet, in the rush of coursework and other activities, students may overlook this valuable source of free money for higher education.

SMSM_MKT10139A_ScholarshipGraphic_280x158A valuable source of money for higher education

Students may believe that scholarships are all geared toward academic excellence or athletic prowess.  While some are, there are millions of opportunities for every kind of talent, background, and experience.  Students should broaden their searches to include place of origin, ethnicity, family professions, and political persuasions.  Another myth of scholarships is that scholarships are only for high school seniors.  Students in all years of their college journey can be eligible for free money.

3 milion scholarship opportunities through Scholarship Search by Sallie Mae® 

Scholarship Search by Sallie Mae®  has a free service that automatically searches through a database of more than 3 million scholarships, worth up to $18 billion, based on a wide range of activities, interests, and affiliations entered by the student.  Email alerts are sent when new matches are posted.  Plus, by registering, students can easily enter a monthly sweepstakes for a chance to win $1,000.

Free college planning resources

While 98 percent of parents believe that college is a worthwhile investment, only 38% have a plan in place to pay for all years.  To help students and parents create planning and saving strategies, there is a suite of free tools, calculators, and resources at SallieMae.com/CollegePlanningToolbox.  Students can estimate their expected monthly loan payments after graduation, analyze award letters, and create a step-by-step financial plan using a combination of scholarships, grants, and loans.

Learn more about Scholarship Search at SallieMae.com/ScholarshipSearch.

 

Originally posted March 9, 2015.

Mar 12
Love0

5 FAFSA Season Tips for Parents and Students

By College, Money Management, Saving No Comments

By Tameka Easter, Sallie Mae Social Media Director

Families with college-age children find themselves in a new season: FAFSA Season. Filling out the FAFSA (Free Application for Federal Student Aid) is the most important step you can take — it’s the only only way to receive federal student aid. Last year, the federal government awarded about $150 billion in grants, low-interest loans, and work-study.1 Make your FAFSA process smoother with these five tips:

Tip 1: Know your deadlines

The deadline for federal student aid is June 30 of the academic year in which the student plans to enroll in college. In other words, if you plan to enroll in college in August 2018, you must submit your FAFSA by June 30, 2018. But do try to submit your FAFSA as soon as possible after January 1. College and state financial aid deadlines can be as early as February or March of the senior year of high school. Colleges may require an additional application to be considered for institutional aid, so check your deadlines and apply as early as possible.

Tip 2: Have your information ready before you start

You’ll need your Social Security number, family financial information, most recent tax returns and/or W2s, bank statements, and a federal PIN number. If the student is a dependent, you’ll need financial information from parents and the student. This Department of Education guide can help clarify which parent’s information should be included: https://studentaid.ed.gov/sites/default/files/who-is-my-parent.png.

Tip 3: Get a PIN

If you plan to complete and submit your FAFSA online, you’ll need a Federal Student Aid PIN, available for free at https://pin.ed.gov/PINWebApp/pinindex.jsp. With it, you can apply and “sign” the FAFSA online, check the status of your submitted FAFSA, make corrections, and even e-sign loan promissory notes. Note: A Federal Student Aid ID will replace the PIN beginning spring 2018.

Tip 4: Do it online

This is the easiest way to fill out the FAFSA — and there’s no charge at https://fafsa.ed.gov/. If you have questions, the site offers online chat, and there are built-in error detectors to catch mistakes in real time. Your online submission will be processed within 3-5 days, compared to 2-4 weeks if you mail it in.

Tip 5: Review your information

At every step of the process, be sure to review the information to make sure that it’s correct. You can make corrections online at the government’s FAFSA site.

For more information on the FAFSA process, along with free tools and tips about paying for college, visit SallieMae.com/FAFSA.

 

1 fafsa.ed.gov

Originally posted on March 2, 2015.

Oct 01
Love0

5 Money Tips for College Freshmen

By College, Money Management, Saving No Comments

As a college freshman, you are about to embark on an exciting and new adventure of college life.  This great experience requires new responsibilities. So, here are 5 Financial Tips for College Freshmen.

Protect Your Credit Cookies!

One of the most precious and valuable assets that you will have in your life is “Good Credit.”  Your credit history and credit score will either make it easier for harder for you to get what you need or want, like your first apartment, your first car, your own cell phone account, etc.  So don’t just let anyone look at your credit, regardless of the minuscule discount or cheap give away gift you’re offered. Also, avoid getting loans that you will not be able to afford to pay.

[ctt template=”8″ link=”a86pl” via=”yes” ]Don’t just let anyone look at your Credit Cookies! – #MoneyTipsForFreshmen[/ctt]

Use Used!

Used Text Books are the BEST!!!  Trust me. Not only are they more cost effective and less expensive than new text books, but you might get lucky and get a text book with highlighted information by students who previously took the class.

Be a Financial Techy

Don’t just use technology for Social Networking.  Use it to help you manage your bank accounts to avoid unnecessary and excessive fees. Set up online banking and account balance alerts to text or email you when your account balances reaches a certain dollar amount.  This will not only help you stay on target with budget, it will also help you avoid those pesky overdraft fees.

You can also manage your accounts and create a budget using the Mint app or at Mint.com.

Be a Coupon King or Queen

Don’t be the one that eats ramen noodles all semester.  Master the art of virtual couponing. Websites like Groupon.com offer deals on dining out and other services that can help you maintain your budget. You can also take those unused gift cards you don’t want and trade them for cash on sites like Raise.com.

Also get a grocery store discount card to add coupons to it through their website.

Saving is Sexy! 

Being broke or begging for money is not Hot!  But … Saving is Sexy!  Make sure you set aside at least 10% of your income from your job, money from parents, or monetary gifts and put it in a savings account for emergencies or for monthly splurging.  Saving early ensure financial security later.

[ctt template=”8″ link=”ZjJ4b” via=”yes” ]Being Broke is Not Hot! But … Saving Is Sexy! – #MoneyTipsForFreshmen[/ctt]

By following these five easy tips you will be the envy of your broke friends!  Best wishes.