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North Dakotans Saving for Education

North Dakotans North Dakotans

Saving for Saving for

EducationEducation

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North Dakotans Saving for Education

Post-secondary EducationPost-secondary Education

What is it?

Any education following high school

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North Dakotans Saving for Education

The Value of EducationThe Value of Education

Increased knowledge

Higher income

More potential

Increased job opportunities

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North Dakotans Saving for Education

What will an education cost?What will an education cost?

Expenses include:

• Tuition and fees

• Books and supplies

• Room and board

• Personal expenses

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North Dakotans Saving for Education

Future Cost of EducationFuture Cost of Education

Start with today’s cost of education

Determine how many years until your student attends post-secondary education

Figure an increase on costs of 5 percent to 6 percent per year

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North Dakotans Saving for Education

Who’s Paying?Who’s Paying?

Will it be the student? Parents? Grandparents? Financial aid? Military? Other?

There are no wrong answers as long as there is a plan to make it happen.

The answer needs a family discussion.

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North Dakotans Saving for Education

Tax Breaks for EducationTax Breaks for Education

Government assistance to families saving and paying for education

Be aware of limits and restrictions of each of the tax breaks

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North Dakotans Saving for Education

Financial AidFinancial AidHalf of students receive some

financial aid

Financial aid is based on financial need

Most financial aid comes in the form of loans

Financial aid should not stop families from saving for education

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North Dakotans Saving for Education

Other Ways to Fund EducationOther Ways to Fund Education Military service Student entrepreneurship Home equity loans Pageants Contests and prizes etc. etc. etc!

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North Dakotans Saving for Education

Creating an Creating an Education Savings PlanEducation Savings Plan

Start with a goal

Decide how much the family can afford

Figure in the rate of return the savings will earn over time

Part of an overall family financial plan

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North Dakotans Saving for Education

Education Savings ToolsEducation Savings Tools

Many types of accounts • Savings accounts and CDs• Money markets and mutual funds • U.S. savings bonds • 529 plans and education IRAs • Stock market investments • Roth IRAs

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North Dakotans Saving for Education

Education Savings ToolsEducation Savings Tools

Check their rate of return (interest)

Some carry more risk than others

Some have tax advantages

Become informed about all

Choose those best for your family

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North Dakotans Saving for Education

Time Makes a DifferenceTime Makes a Difference

Start an education savings plan early

Let your money work for you

Use the “magic” of compounding

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North Dakotans Saving for Education

For More InformationFor More Information

Check out the online presentation of North Dakotans Saving for Education at:www.ag.ndsu.nodak.edu/money/index.htm