At first sight, a 529 College savings account sounded more like a random number explaining what an incredible amount of ways there are to open savings accounts
Rather than one significant way to prepare for your child future.
I would very soon learn that this is a method used by many Americans who are planning a future for their child to go to College and are in need of a financial plan.
Prepaid or savings plans is the two main ways you can go about to when using this kind of plan, regardless of the financial situation you are in you are able to use a 529 plan
To help save for your child’s future.
I believe there are very few reasons why you should not save for your child’s future in today’s economy.
In the past decade the world has struggled a very great recession, which has brought the fear of uncertainty to many Americans today and fear of what the near future will bring.
Now this is just another reason why you should always have a backup plan in mind, especially when you are raising a family and you want to be able to provide a great future that can help avoid a struggling economy like the one we have today.
What we once learned in College will be different from what our children will learn.
They will learn about what happened to the world during this time, the best way to avoid a poor economy and how to be able to predict it much better than we did when it hit us.
This is something to keep in mind when considering College savings and what we will contribute to when saving up for a future education.
Even though we might not be able to control what path our children will choose to go down, we will know that they will be given the chance of a lifetime to find out what makes them happy or what makes them wanting to be a doctor rather than a dancer, or a contractor rather than an actor.
Knowing the importance of what a variety of possibilities you will be able to bring your child should be rewardingly enough to open some sort of savings account, but you should also be aware of the risks you make in either way you choose to take.
What separates the two plans are basically how much you are able to put aside on a regular basis or for one sole investment.
Being able to put a big chunk of money aside for a pre paid investment plan can be a great deal for someone who is sure about his or her child’s future and want to be assured of an education plan that is guaranteed not to fail.
I believe this is a great deal if you have the opportunity and have at lest two children with a future most likely to end up in college.
It might seem unlikely that one of them would not, but an important thing to keep in mind is that the money you put aside is solely intended for educational purposes and you will unfortunately not actually be able to predict weather your child chooses to attend college or not in the future.
The other plan works much alike a retirement plan where you put money aside on a regular in an investment fund to where you can receive tax benefits.
This is a more risky choice since you will be investing money and hoping for a better return, although you will have better control of the money you put in and there will always be a chance of a better return.
In either case, it is a future investment you are taking on for someone else to which you can only control to a certain extent.
It is a quite safe bet, and in most cases this is something you will take great pride in being able to provide with such great future promises.
As a College graduate myself I can only hope a majority of College attendees will follow through and have the same great experience that I had during my years at Berkeley.
However, my situation was a bit different from most Americans saving for College thus I decided to go to a private College about a year before the first semester started.
This never gave me the option to put money aside for an educational program overseas,
because I simply didn’t know what there was out there for me to experience.
From where I am from, a College or a University degree is for free except for the literature, as long as your GPA from high school is high enough for what the program requires.
It works in favor for many young adults who wants to be highly educated and hopefully receive highly paid future jobs but wouldn’t have had the chance to even apply if it wasn’t for free and only depending on you performance in academics.
There will be incredible competition amongst the applicants and not everyone will be accepted even though they would be completely qualified due to the great amounts trying to get in.
The down side of this educational system is that many who wish to take on a new chapter in life and who is willing to give all the time and thought it takes to perform better than they have in high school, wont be able to apply for such schools thus they didn’t have grades high enough.
It would take them years in a special pre university program to be able to even have it as an option.
The reason why I choose to put the two systems in comparison with each other is because I have experienced a little bit of both worlds where at one place only brains will buy you future and success, and another place where a well thought-out payment plan along a great spirit will be able to buy you a promising future.
That is not to say that you don’t need brains to get into an American College by any means, but I feel more accepted and motivated to succeed and do the right thing in the American College even though it did cost me a great amount.
It might be a bit drastic to make such contrasts but it is also the reason why I decided to follow the American College program rather than my own Country’s.
I was never the A student of the class, but that didn’t mean I didn’t have dreams of succeeding or becoming something remarkable.
Even if it did cost me a tremendous amount of money, not only for the education but to be able to provide myself with a living in New York City it was worth every penny.
I realized how much I learned from just being thousands of miles away from my family and friends and in a country where absolutely everything was different form what I was used to.
And it gave me the chance to grow so much more as a person taking care of myself and learning how you handle difficult financial situations at an early stage in my life.
Regardless of what you see yourself doing in the future, it is always good to know you have an option to become something you didn’t think was possible rather than feeling suppressed because you were lacking motivation.
Having said that, there is no better feeling than reaching your goal, which is a possibility for anyone who is willing to work hard and believe in finding a solution.