SPECIAL SECTION:
EDUCATION
Engineering majors are in high demand and related jobs rank
among the highest paying in the U.S. Applying science to real-
life problems makes this an appealing career area.
10. Biology
Studying biology means studying the
world around us. From plants to animals to
humans, and the environments in which they
live, biology majors can find themselves in
the genetics or biotechnology industry, going on to medical
school, or becoming an environmentalist, to name a few.
START SAVING FOR COLLEGE WHEN YOUR
KIDS ARE BORN
There is no time better to start saving for college than when
your child is born, or even earlier! There are many options
available for parents who want to get a jump-start on saving
for college, and some plans even allow for savings to be used
at the child’s discretion (for education or something else)
when they reach a certain age.
Parents wishing to save specifically for education purposes
can open a 529 college savings plan. The name comes from
Section 529 of the IRS tax code, which encourages saving for
future educational purposes through a tax-advantaged plan.
In Pennsylvania, there are two options available: the PA 529
Guaranteed Savings Plan (GSP) or the PA 529 Investment
Plan (IP). Each plan requires a certain amount of money
down (as little as $15) and both plans can be used at most
post-secondary schools, including colleges, universities,
technical and professional schools, or even elementary or
secondary public, private, or religious schools. Another
benefit is that neither of these plans is limited to in-state
tuition.
The biggest difference between the two plans is the way
your money is invested and how it’s managed. The GSP
allows you to choose the type of school or tuition level to save
toward, then the PA Treasury manages your investments from
there. The benefit is that your savings continues to grow with
tuition inflation. The IP gives you more freedom to invest
your savings into a variety of 17 different investment options,
but your money is more fluid, allowing you to lose or gain
depending on market conditions.
There are several other options available when starting to
save for a minor, including educational savings account (ES),
Uniform Transfer/Gift to Minors Act, custodial accounts, or
simply putting money under your mattress. No matter what
route you choose, it’s never too early to start saving.
TRADE SCHOOLS
Over the past 30 years, the cost to attend a four-year
college has increased by 213 percent, leaving many college
graduates searching for ways to repay their student loans.
Some high school seniors are looking to avoid the hefty
price tag of a four-year degree and instead opting to attend a
trade or technical school. Trade school enrollment continues
to increase since the early 2000s, but a steep decline in
vocational education in the 1980s and ‘90s led to a shortage
Continued on next page >
MILLCREEK
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FALL 2019
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