5 College Funding Tips from a CPA

College is an important step for your child, but it can also come with a hefty price tag. Planning is key to alleviating financial stress and ensuring your child's education is within reach. Here are 5 Tips for College Funding and some important considerations:

Tip #1: Start Early for College Funding:

Time is your biggest ally! Begin saving for college as soon as possible. The power of compounding can work wonders in growing your savings over time. Options like Education Savings Accounts, or other investment vehicles tailored for education expenses.

Tip #2 Financial Aid:

Familiarize yourself with the different types of financial aid available, such as scholarships, grants, work-study programs, and student loans. Think about local, state, and national scholarship opportunities!

Tip #3: Explore Tax Benefits:

The tax code offers various education-related tax benefits that can help ease the financial burden. Think about maximizing deductions and credits, and savings. Look at savings plans that may apply to you and your child.

Tip #4 Create a Budget:

Establishing a realistic budget for college expenses is crucial. Consider tuition, fees, textbooks, room and board, transportation, and personal expenses. Create a comprehensive budget that helps you stay on track and make informed financial decisions throughout the college years.

Tip #5 Find a trusted financial partner

Throughout the college funding journey, a trusted financial partner such as a CPA can be very helpful. They can guide you in optimizing savings, navigating financial aid applications, and strategizing tax-efficient solutions. Leverage their expertise to make the most of your resources.

Thinking about funding a college education can be daunting, but with some research, planning, and help from the right partners, you can be less stressed and your child can be more successful!

Double Down

"Double down on what is working best." – James Clear, author of Atomic Habits.

Every week, I (and thousands of others) receive an email from James Clear called the 3-2-1 Thursday. It includes quotes and ideas from him and others he has found interesting or helpful. The above quote was a part of the email recently, and I paused to think about it.

In my practice, I often work with clients, especially new business owners who do everything they can to be successful. So much so that they don’t always know what is working and what is not. They land in my office to set up the financial end of their business and usually have questions ranging from taxes to marketing to payroll and are generally worried about what they have missed.

They report every mistake they have made or thought they have and will tell me how little they know about running their business. This is a direct result of doing too much.

There are too many small details in the life of a new business owner to attempt to manage them all. My advice to them, although simple, follows the idea James Clear presented in his quote. I tell them to capitalize on their strengths first, note what works, and push out.

Focusing on what is going well instantly boosts their confidence and gives them the extra juice they need to keep going. They also tend to remember why they started their business and that they indeed have what it takes to run it.

Access your IRS account 24/7!

Did you know you can securely access your IRS account at any time?

The IRS continues to create services to help taxpayers better manage their accounts. One of those includes an online tool to access your account. By logging on to IRS.gov/account, you can view your account balance, payment history, transcripts, and other important information. You can also pay your bill and set up payment agreements. If you are a first-time user, there is a secure access process where you must authenticate your identity. You will input your username and password if you are a returning user.

The uses for this service are many. When you apply for a mortgage, student loans, and government benefits, accessing your tax transcripts will save you time. Knowing your tax account balance will help you stay on top of your payments and avoid fees; seeing past payments enables you to monitor your progress.

Gone are the days of waiting on the phone to speak to an IRS representative for some of these tasks. Learn more about this and other new IRS programs at https://www.irs.gov/newsroom/irs-online-account-makes-it-easy-for-taxpayers-to-view-their-tax-info-anytime.