North Dakotans

1

• North Dakotans
• Saving for
• Education

2
Post-secondary Education

• What is it?
• Any education following high school

3
The Value of Education

• Increased knowledge
• Higher income
• More potential
• Increased job opportunities

4
What will an education cost?

• Expenses include
• Tuition and fees
• Books and supplies
• Room and board
• Personal expenses

5
Future Cost of Education

• Start with todays cost of education
• Determine how many years until your student
  attends post-secondary education
• Figure an increase on costs of 5 percent to 6
  percent per year

6
Whos Paying?

• Will it be the student? Parents? Grandparents?
  Financial aid? Military? Other?
• There are no wrong answers as long as there is a
  plan to make it happen.
• The answer needs a family discussion.

7
Tax Breaks for Education

• Government assistance to families saving and
  paying for education
• Be aware of limits and restrictions of each of
  the tax breaks

8
Financial Aid

• Half of students receive some financial aid
• Financial aid is based on financial need
• Most financial aid comes in the form of loans
• Financial aid should not stop families from
  saving for education

9
Other Ways to Fund Education

• Military service
• Student entrepreneurship
• Home equity loans
• Pageants
• Contests and prizes
• etc. etc. etc!

10
Creating an Education Savings Plan

• Start with a goal
• Decide how much the family can afford
• Figure in the rate of return the savings will
  earn over time
• Part of an overall family financial plan

11
Education Savings Tools

• Many types of accounts
• Savings accounts and CDs
• Money markets and mutual funds
• U.S. savings bonds
• 529 plans and education IRAs
• Stock market investments
• Roth IRAs

12
Education Savings Tools

• Check their rate of return (interest)
• Some carry more risk than others
• Some have tax advantages
• Become informed about all
• Choose those best for your family

13
Time Makes a Difference

• Start an education savings plan early
• Let your money work for you
• Use the magic of compounding

14
For More Information

• Check out the online presentation of North
  Dakotans Saving for Education at
• www.ag.ndsu.nodak.edu/money/index.htm