| Higher learning doesn't come cheap, and many | | | | earned to roll over into the CD's value. In other |
| families struggle to pay for the annual tuition costs | | | | words, you can literally earn interest on your interest |
| necessary for their children's education. In other | | | | depending on the plan that you purchase. Unlike U.S. |
| cases, college students work while attending school | | | | Savings Bonds, however, income taxes are due and |
| or even take out student loans to help cover the | | | | payable each year for the interest earned on a |
| costs. One way to avoid the stress is to start saving | | | | Certificate of Deposit. If you find yourself in a |
| early, and this can be done in a number of ways. U.S. | | | | situation where there are no savings available for |
| Savings Bonds are a popular way for many individuals | | | | college tuition, students are often permitted to take |
| and families to save money. With both the Series I | | | | fewer classes and simply pay for each course |
| Bonds, which are sold at face value, and the Series | | | | individually. This prevents families from having to |
| EE Bonds, which are sold at half their face value, you | | | | produce a full-time tuition when the money simply |
| can earn interest for up to 30 years. According to | | | | isn't available. Financial aid, student loans and payment |
| the most recent brochure, investing $100.00 per | | | | plans are typically offered to students who qualify, |
| month into U.S. Savings Bonds could possibly equal | | | | which may make the a college degree within reach |
| $24,609.00 in 15 years. This is, however, only an | | | | for many who may otherwise not be able to afford |
| example and the actual figure will be based upon | | | | the tuition expenses. The information contained in this |
| current rates and the investor's ability to save. Best | | | | article is designed to be used for reference purposes |
| of all, the interest earned on savings bonds is | | | | only. It should not be used as, in place of or in |
| exempt from all state and local income taxes. Federal | | | | conjunction with professional financial advice or |
| income taxes are deferred until the bonds reach final | | | | recommendations relating to incomes taxes, |
| maturity, or until they are redeemed, whichever | | | | investments and/or the ability to pay for college |
| comes first. In some cases, the interest earned may | | | | using any of the aforementioned methods. For |
| be excluded from federal income taxes if the funds | | | | additional information, consult a financial planner in |
| are used to pay for qualified higher education | | | | your area. |
| expenses. Another popular method of saving is | | | | Leslie's writing is made possible by the support of |
| through Certificates of Deposit, also known as CDs, | | | | several family-friendly online shops offering |
| which are available at most financial institutions. | | | | everything from leather cleaner for furniture care to |
| Although these require a larger investment, typically a | | | | cheap wedding favors, groomsmen gifts and more. |
| minimum of $1,000.00, they allow for the interest | | | | |