College funding

When planning for lifetime income and expenses, veterans may qualify for resources unavailable to civilians. Financial planners need to help determine which are available to the dependents of veterans, which are exclusively for veterans with a service-connected disability, which are actionable only upon discharge and which include choices available during the financial planning process later in life. Three major considerations are major life-cycle events, income and insurance.

The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (known as the Credit CARD Act) placed limits on the ability of those under 21 to get a credit card. It also set strict limits on card companies’ ability to market to college students. However, whether they get a credit card now or later, it’s a good idea for young adults to learn good credit habits early. The Ohio Society of CPAs recommends these tips for avoiding credit pitfalls.

Everyone knows that college tuition and fees are high-cost items, but what about the many other expenses associated with higher education? Parents of freshmen are often very surprised by the price of books, travel, dorm accessories and other college necessities. In fact, this year parents are expected to spend an average of just over $800 on purchases that include clothes, electronics, dorm furnishings and food, according to the National Retail Federation. The Ohio Society of CPAs offers six tips for saving on college expenses.

It’s no secret that sticker shock sets in quickly when you’re looking at education expenses. The price for yearly tuition alone can range from nearly $8,000 at public four-year colleges for in-state students to an eye-popping $35,000 or more at private four-year institutions, according to the College Board. And those amounts don’t include the cost of room and board as well as other expenses. The good news is that the tax laws offer a number of opportunities to minimize your out-of-pocket education costs, if you know how to make the most of them. The Ohio Society of CPAs provides these valuable tips.

In the college savings game, all strategies aren't created equal. Should you choose a 529 plan, a Coverdell education savings account, or an UGMA/UTMA custodial account in your child's name? Or would you rather put your money in a mutual fund in your own name? Ideally, you'll want to choose a savings vehicle that offers you the best combination of tax advantages, financial aid benefits, and flexibility while meeting your overall investment needs.

You vaguely remember signing a piece of paper every year at college registration time. Now that you've graduated, it's all become painfully clear--those pieces of paper were promissory notes detailing your student loan obligations. Your loans aren't going to go away, and you'll want to repay them as quickly and easily as possible. So whether you have a small sum or a small fortune to pay off, you'll want to brush up on some student loan basics.

Even with all of your savvy college shopping and research about financial aid, college costs may still be prohibitive. At these prices, you expect you'll need to make substantial financial sacrifices to send your child to college. Or maybe your child won't be able to attend the college of his or her choice at all. Before you throw in the towel, though, you and your child should consider steps that can actually lower college costs. Although some of these ideas deviate from the typical four-year college experience, they just might be your child's ticket to college--and your ticket to financial sanity.

You want to retire comfortably when the time comes. You also want to help your child go to college. So how do you juggle the two? The truth is, saving for your retirement and your child's education at the same time can be a challenge. But take heart--you may be able to reach both goals if you make some smart choices now.

Education tax credits can help offset the costs of higher education for yourself or a dependent. The Hope Credit and the Lifetime Learning Credit are two education credits available which may benefit you. Because they are credits rather than deductions, you may be able to subtract them in full, dollar for dollar, from your federal income tax.

Each year, the cost of earning a college degree rises a little higher. What can you do to keep up?

These days, it's hard to talk about college without mentioning financial aid. Yet this pairing isn't a marriage of love, but one of necessity. After all, financial aid may be the deciding factor in whether your child attends the college of his or her choice or even attends college at all. That's why it's important to develop a basic understanding of financial aid before your child applies to college. Without such knowledge, you may have trouble understanding the process of aid determination, filling out the proper aid applications, and comparing the financial aid awards that your child receives.