HIMPower Magazine HimPower December 2017 | Page 16

IT’S YOUR MONEY
Saving for College?
You Have Options
by Robert Rhinesmith
C
ollege isn't cheap. Currently, the
average cost of a year of public
college is $8,893, according to the
College Board, a New York City-
based nonprofit aimed at expanding access
to higher education. If you go out of state,
that amount will almost triple ($22,203),
and the average cost of attending a private
university is $30,094. If you're wondering
how much debt you can afford to rack up, "a
good rule of thumb is to have no more than
your first year's wages, (student), in debt,"
says Leonard Wright, a certified public
accountant and personal financial specialist
in San Diego.
16  HimPower December 2017
With that in mind, if you have kids, and
you're not certain how you're going to pay
for college, here are some suggestions to get
you started.
529 PL ANS
One of the most popular options is a
529 plan. A 529 plan is a vehicle you put
money in that’s designated for college. There
are a lot of 529 plans, which all come with
their own annual fees and operating costs.
Generally, 529s have tax advantages, such
as earnings that aren’t subject to federal tax.
Almost every state has its own 529 plan,
but you can put your money in any state's