1. North Dakotans Saving for Education 1 North Dakotans Saving for Education

2. North Dakotans Saving for Education 2 Post-secondary Education What is it? Any education following high school

3. North Dakotans Saving for Education 3 The Value of Education  Increased knowledge  Higher income  More potential  Increased job opportunities

4. North Dakotans Saving for Education 4 What will an education cost?  Expenses include: Tuition and fees Books and supplies Room and board Personal expenses

5. North Dakotans Saving for Education 5 Future Cost of Education  Start with today’s 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. North Dakotans Saving for Education 6 Who’s 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. North Dakotans Saving for Education 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. North Dakotans Saving for Education 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. North Dakotans Saving for Education 9 Other Ways to Fund Education  Military service  Student entrepreneurship  Home equity loans  Pageants  Contests and prizes  etc. etc. etc!

10. North Dakotans Saving for Education 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. North Dakotans Saving for Education 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. North Dakotans Saving for Education 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. North Dakotans Saving for Education 13 Time Makes a Difference  Start an education savings plan early  Let your money work for you  Use the “magic” of compounding

14. North Dakotans Saving for Education 14 For More Information Check out the online presentation of North Dakotans Saving for Education at: www.ag.ndsu.nodak.edu/money/index.htm