The rising cost of a college education is alarming. It is often the biggest worry that parents and grandparents have for their family. The amount of debt in the hands of graduates has grown to 1.3 trillion dollars – far exceeding consumer debt in the United States.

When we borrow money, we are trading tomorrow’s earnings to buy something today. Economists agree that this will have long-term implications on this generation’s ability to purchase cars, homes and provide for their families in the future. Yet, studies show that a college education can pay rich dividends that can last a lifetime.

529 Plans

529 plans are a funding alternative and the closest thing to a perfect vehicle for college savings. A 529 plan allows you to set aside funds in any state sponsored plan, and as long as the money is used for college or graduate school, the distributions are paid out completely tax free. But there are many caveats to 529 plans, and it is important to know the pros and cons of investing in one.

At Key Financial, an integrated financial plan that is monitored and adjusted provides clarity and comfort for your children’s futures.