It is widely accepted that the U.S. economy has entered a recession. Reports of stock market turbulence are all over the media. Somewhat quietly, the national unemployment rate has been constantly rising, and was last reported at 6.5 percent (Utah has the fourth lowest unemployment rate in the nation at 3.5 percent). Despite these alarming economic indicators, as Christmas approaches our minds are consumed with identifying what gifts will bring the most joy to those we love. Rising unemployment figures point to one gift that will bring the most happiness to our children’s lives: a college savings plan.
I know education accounts aren’t above a new playstation on most Christmas lists, but consider this: in October, the national unemployment rate for people who lack a high school degree is 9.3 percent. That figure drops to 5.9 percent for people who hold a high school diploma and 3 percent for those with a college degree. If Christmas is about making others happy, what could possibly make your children happier than a lifetime of employment and the ability to support their families?
During the next week, I’ll be posting a three-part series. Part one will cover the benefits and drawbacks of the Utah 529 College Savings Plan, part two will explore the strengths and weaknesses of Coverdell Savings Accounts, and part three will discuss other options for investing in your child’s future.
Remember, all the knowledge in the world won't help your financial circumstances. Be sure to speak to a financial planner to implement the college savings plan that is right for you.
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