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AUGUST 2018
BUSINESS AND FINANCE
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highpr io rityplumbing.c om
LI CENSED AND INSURED
HOW CAN YOU HELP YOUR
KIDS PAY FOR COLLEGE?
I
t’s still summer, but
we’re getting close to a
new school year. One day,
though, “back-to-school”
will mean “off to college” for
your children. Will you be
financially prepared to help
your kids cope with the costs
of higher education?
Your first step, of course, is to
know what you’re up against,
so here are some numbers:
For the 2017-18 academic
year, college costs (tuition,
fees, room, and board) were,
on average, nearly $21,000
for in-state students at four-
year, public schools and
almost $47,000 for students
attending private colleges or
universities, according to the
College Board. Also, you can
probably expect even bigger
price tags in the years to
come.
To help prepare for these
costs, you might want to
consider putting your money
in a vehicle specifically
designed to help build assets
for college, such as a 529
education savings plan.
All withdrawals from 529
plans are free from federal
income taxes as long as the
beneficiary you’ve named
uses the money for qualified
college, trade school or
graduate school expenses.
Withdrawals for expenses
other than qualified education
expenditures may be subject
to federal, state and penalty
taxes on the earnings portion
of your plan. (However, tax
issues for 529 savings plans
can be complex, so please
consult your tax advisor
before investing.)
You can generally invest in
the 529 savings plan offered
by any state, but if you invest
in your own state’s plan, you
may be able to claim a tax
deduction or receive a tax
credit.
By starting your 529 plan
early, when your children
are just a few years old, the
investments within the plan
have more time for potential
growth. Plus, you can make
smaller contributions each
year, rather than come up
with big lump sums later on.
A 529 plan is not the only
education-savings tool you
can use, but it has proven
effective for many people.
You may also want to consider
ways to keep college costs
down in the first place.
For one thing, your children
may be eligible for various
forms of financial aid.
Some types of aid depend
on your family’s income,
but others, such as merit-
based scholarships, are open
to everyone. However, you
don’t have to wait until you
get an offer from a school’s
financial aid office – you can
explore some
opportunities
on your own.
For example,
many local
and national civic and religious
groups offer scholarships
to promising young people,
and your employer may even
provide some types of grants
or assistance. Plus, your
state also may offer other
benefits, such as financial
aid or scholarship funds.
It can certainly take some
digging to fin d these funding
sources, but the effort can be
worthwhile.
Here’s another option
for reducing college costs:
Consider sending your
child to a local community
college for two years to
get many of the “general”
requirements out of the way
before transferring to a four-
year school for a bachelor’s
degree. Community colleges
are typically quite affordable,
and many of them offer high-
quality programs.
A college degree is costly,
but many people feel it’s still
a great investment in their
children’s future. Also, by
taking the appropriate steps,
you can help launch that
investment.
This article was written by
Edward Jones for use by your
local Edward Jones Financial
Advisor.
By Jason Witcher
DAVE SAYS
D
ear Dave,
I own a small business with
two employees. I have a bit
of a hiring conundrum. I’m
looking at two candidates
for a position. On paper
they’re evenly matched. I’ve
interviewed each of them four
times, and I’m still undecided.
How would you recommend
determining which is best for
the job?
-Bryan
Dear Bryan,
whole person, and decide if
you like who they really are.
It can also lead someone to
say things that might cause
you to hire them or not hire
them.
Something we always do
at my company is a final
interview over dinner. Spouses
are invited to this meeting.
We encourage them to speak
into the situation. I’m not
talking about a big test, just
conversation and a friendly,
family atmosphere. You can
tell a lot about a person by
how they talk to, and interact
with their spouse. Sometimes
a spouse, if there is one,
will catch things you missed
during other interviews.
As an entrepreneur, that’s
a great problem to have.
I’m glad you understand
the wisdom of interviewing
potential hires more than
I’m impressed that you’re
once. Sometimes business
owners hire a person after just taking this seriously, and
one meeting. That’s a really devoting some real time
and energy to hiring. Your
bad idea.
thoughtfulness leads me to
Have you let your team think you’ll make the right
members talk to them? decision!
Sometimes other people,
-Dave
especially those who might
be someone’s co-worker, will
*Dave Ramsey is CEO of
pick up on things you missed
during a formal interview. Ramsey Solutions. He has
You might also think about authored seven best-selling
scheduling a meeting with books, including The Total
each of the candidates Money Makeover. The Dave
off-site. People tend to be Ramsey Show is heard by
more at ease in an informal more than 14 million listeners
setting, like a restaurant or each week on 585 radio
coffee shop. This could lead stations and multiple digital
you to discover new things. platforms. Follow Dave on the
Sometimes, a more relaxed web at daveramsey.com and
setting allows you to see the on Twitter at @DaveRamsey.