PART 3 OF THE COFFEE WITH THE COUNSELORS SERIES NICOLE SAYRE- 6 TH GRADE KEVIN SIEGEL- 7 TH GRADE GINA YANNARELL- 8 TH GRADE Saving For Your Child’s Future

MINIMAL INTEREST GROWS ON A SAVINGS ACCOUNT, SO MANY PARENTS ARE SEEKING ADDITIONAL OPTIONS TO MAKE SURE THEY HAVE MONEY FOR THEIR CHILDREN’S FUTURES Will your savings cut it?

COLLEGE GRADUATES EARN 74% MORE THAN HIGH SCHOOL GRADUATES WHILE EXPERIENCING HIGHER JOB SATISFACTION AND LOWER UNEMPLOYMENT. -GEORGETOWN UNIVERSITY CENTER ON EDUCATION AND THE WORKFORCE (2011) AND THE COLLEGE BOARD (2010) Did You Know?

Different Types of Accounts

COLLEGE SAVINGS PLANS LIKE A 401K OR IRA, INVEST CONTRIBUTIONS IN MUTUAL FUNDS OR SIMILAR INVESTMENTS ACCOUNT VALUE GOES UP OR DOWN BASED ON PERFORMANCE OF INVESTMENT OPTIONS NO TAXES IF USED FOR EDUCATION EACH CONTRIBUTOR – UP TO $14,000 PREPAID PLANS 529 Plans

MAXIMUM CONTRIBUTION PER YEAR IS $2000 CANNOT CONTRIBUTE PAST AGE 18 FUNDS MUST BE DISPERSED BY AGE 30 ALLOWS ALMOST ANY INVESTMENT INSIDE INCLUDING STOCKS, BONDS, AND MUTUAL FUNDS (SAME AS IRAS) CAN WITHDRAW MONEY TAX-FREE FOR ELEMENTARY AND SECONDARY SCHOOL EXPENSES MAINLY USED FOR PRIVATE HIGH SCHOOLS Coverdell ESAs

CUSTODIAL ACCOUNTS – PARENT IS CUSTODIAN PARENT MAKES CONTRIBUTIONS ONCE CHILD IS 18, ASSETS BECOME CHILD’S PROPERTY CAN BE USED FOR ANYTHING (NOT JUST EDUCATION) TAXABLE ACCOUNTS UNLIKE 529S AND COVERDELL UTMAs

STARTING TO BECOME MORE POPULAR DISTRIBUTIONS ARE TAX-FREE DO NOT HAVE TO BE USED FOR COLLEGE MUST BE PURCHASED 5 YEARS BEFORE USED DOES NOT BECOME CHILD’S PROPERTY – PARENTS STILL HAVE CONTROL OVER IT LIMITED CONTRIBUTIONS ($5,500-6,500/YEAR) Roth IRAs

Traditional IRA Roth IRA Retirement fund Put money into the traditional IRA for retirement purposes only. Can not take out money you put into it until you’re 59, without penality. Retirement fund Can take out money you put into the Roth IRA after having it for 5 years. Don’t have to wait until 59 or older. Can only take what you put into it, not what it earned. Can be used for anything- college, new house etc. Different Types of IRA’s

Additional Ways to Receive Money for College Grants  Money you can apply for that doesn’t have to be paid back!  Federal Pell Grant  Other grants are available in many different areas  Grants.gov - What is a Grant? Grants.gov - What is a Grant? Scholarships  Once in high school, there are many different scholarships available.  Scholarships are also money earned or rewarded that does not need to be paid back.  Naviance Sign In Naviance Sign In

WHAT TYPE OF CAREER IS YOUR CHILD INTERESTED IN? THERE ARE MANY DIFFERENT CAREERS THAT FALL INTO MANY DIFFERENT CAREER CLUSTERS Some things to talk about..

Science, Technology, Engineering and Mathematics. Agriculture, Food and Natural Resources, Public Safety, Corrections and Security Architecture and Construction Health Science Business Management and Administration Marketing Finance Government and Public Administration Human Services Hospitality and Tourism Arts, A/V, and Communications Manufacturing Transportation, Distribution and Logistics Information Technology Education and Training Career Clusters

Bridges

It’s also important… To discuss with your child jobs and careers that are currently in demand. The job market, economy and demand for jobs is changing constantly. The most in demand jobs for 2013 are:  Software Developers, Accountants, Market Research Analyst, Computer Systems Analyst, Human Resource Managers, Network System Administrators, Sales Reps, Web Designers and Mechanical and Industrial Engineers.

Other Educational Options Technical Schools Shorter Education Programs  5 year master’s degree programs.  A traditional master’s program requires a four year bachelor’s degree plus at least two years enrolled in a master’s program, requiring 6 years of tuition.  Some schools offer 5 year master’s programs, instead of 6, which saves a year tuition cost. It’s important to start researching your child’s options now!

PLEASE REFERENCE THE TABLE IN THE BACK THAT HAS HAND OUTS AVAILABLE ON TOPICS WE COVERED TODAY AND OTHER TOPICS THAT WILL BE OF IMPORTANCE IN HIGH SCHOOL! Thank You for Coming!