{"id":2824,"date":"2020-07-21T06:49:30","date_gmt":"2020-07-21T10:49:30","guid":{"rendered":"https:\/\/rockonthemoney.com\/?post_type=podcast&#038;p=2824"},"modified":"2020-07-21T06:49:31","modified_gmt":"2020-07-21T10:49:31","slug":"short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund","status":"publish","type":"podcast","link":"https:\/\/netcast.one\/rotm2\/podcast\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund\/","title":{"rendered":"SHORT &#8211; Dave Ramsey Baby Step 5 Part 1\/2 &#8211; Save for Your Children\u2019s College Fund"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"360\" src=\"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/COLLEGESAVINGS.jpg\" alt=\"\" class=\"wp-image-2827\" srcset=\"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/COLLEGESAVINGS.jpg 640w, https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/COLLEGESAVINGS-526x296.jpg 526w, https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/COLLEGESAVINGS-300x169.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<p>**This post contains affiliate links, and we may be compensated if you make a purchase after clicking on the affiliate and\/or partner links.<\/p>\n\n\n\n<p>Baby step 5 comes after taking care of the priorities of emergency funds, paying off consumer debt and saving 15% in your retirement savings. At this point you can move into saving up to help pay for your child&#8217;s education. However, we stress make your retirement savings the highest priority over saving for education. Do not allow &#8216;parental guilt&#8217; keep you from a safe and secure retirement. <\/p>\n\n\n\n<p>Here are some ways that you can save for your kid&#8217;s college education.<\/p>\n\n\n\n<ul><li><strong>Education Savings Account (ESA):&nbsp;<\/strong>You may save $2,000 (after tax) per year, per child that grows tax free!&nbsp; Beneficiary must be under 18 years old.&nbsp; Money must be used for education purposes only. Otherwise, a 10% penalty and taxes will apply.&nbsp; Money must be used or rolled over to a qualifying family member by age 30 or a 10% penalty and taxes will apply.&nbsp; Singles with an income over $110,000 \u2013 or married couples with an income over $220,000 are not eligible.<\/li><li><strong>529 Plan:&nbsp;<\/strong>If you do not meet the income limits for an ESA, or if you want to save money above an ESA, you can use a certain kind of 529 plan. You can save up to $12,000 per year, per child in a 529 plan.&nbsp; The money must be used for higher education only.&nbsp; Otherwise, a 10% penalty and taxes will apply to the gains only.<\/li><li><strong>UTMA\/UGMA Plans:&nbsp;<\/strong>UTMA (or UGMA) stands for Uniform Transfer (Gift) to Minors Act.&nbsp; Not usually as good as the ESA or 529 plans.<\/li><\/ul>\n\n\n\n<p>Do not use the following items as a way to pay for college education :<\/p>\n\n\n\n<ul><li>Insurance<\/li><li>Savings bonds (only 5-6% growth)<\/li><li>Zero-coupon bonds. (only 6-8% growth)<\/li><li>Pre-paid college tuition (only 7% inflation rate)<\/li><li>401k loan (never!)<\/li><li>Home equity loan<\/li><\/ul>\n\n\n\n<p>ESAs, 529 Plans and UTMA\/UGMA plans are the preferred methods for saving.<\/p>\n\n\n\n<p><strong>WEBULL \u2013 Get 2 FREE stocks valued up to $1,000 here<\/strong>:&nbsp;<strong><a href=\"https:\/\/act.webull.com\/kol-us\/share.html?hl=en&amp;inviteCode=HvpbX35EsVmn\">https:\/\/act.webull.com\/kol-us\/share.html?hl=en&amp;inviteCode=HvpbX35EsVmn<\/a><\/strong>\\<br><br><strong>BESTOW \u2013 Fast, Free Quote on affordable online term life insurance. No exam, no waiting, no hassles:&nbsp;<\/strong><a href=\"https:\/\/tinyurl.com\/y79pywmw\"><strong>https:\/\/tinyurl.com\/y79pywmw<\/strong><\/a><\/p>\n\n\n\n<p><strong>BUYING OR SELLING A HOME \u2013<\/strong><a href=\"https:\/\/choicerealtyconnect.com\/\"><strong>&nbsp;https:\/\/choicerealtyconnect.com\/<\/strong><\/a>&nbsp;when you are wanting to buy or sell a home, condo or any type of property. Get matched with up to 3 top agents in your area.<br><br><strong>Website:&nbsp;<\/strong><a href=\"https:\/\/netcast.one\/rotm2\/\"><strong>https:\/\/netcast.one\/rotm2\/<\/strong><\/a><br><strong>Subscribe to the podcast \u2013 all links located here:&nbsp;<\/strong><a href=\"https:\/\/linktr.ee\/rocklandusa\"><strong>https:\/\/linktr.ee\/rocklandusa<\/strong><\/a><br><strong>Call us with your questions : 989-888-ROCK (7625)<\/strong><br><strong>Facebook Group:&nbsp;<\/strong><a href=\"https:\/\/www.facebook.com\/groups\/your401k\/\"><strong>https:\/\/www.facebook.com\/groups\/your401k\/<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>**This post contains affiliate links, and we may be compensated if you make a purchase after clicking on the affiliate and\/or partner links. Baby step 5 comes after taking care of the priorities of emergency funds, paying off consumer debt and saving 15% in your retirement savings. At this point you can move into saving [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2797,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"episode_type":"audio","audio_file":"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/ROTMS-EP22.mp3","cover_image":"","cover_image_id":"","duration":"16:18","filesize":"15 MB","date_recorded":"21-07-2020","explicit":"","block":"","itunes_episode_number":"22","itunes_title":"SHORT - Dave Ramsey Baby Step 5 Part 1\/2 - Save for Your Children\u2019s College Fund","itunes_season_number":"","itunes_episode_type":"bonus","filesize_raw":"15885545"},"tags":[321,320,111,167,207],"series":[234,273],"coauthors":[284],"episode_featured_image":"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/07\/ROTM-TITLE-SHORT-600.jpg","episode_player_image":"https:\/\/netcast.one\/rotm2\/wp-content\/uploads\/2020\/04\/album-rockonthemoney1410-10.jpg","download_link":"https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-download\/2824\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund.mp3","player_link":"https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-player\/2824\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund.mp3","audio_player":"<!--[if lt IE 9]><script>document.createElement('audio');<\/script><![endif]-->\n<audio class=\"wp-audio-shortcode\" id=\"audio-2824-1\" preload=\"none\" style=\"width: 100%;\" controls=\"controls\"><source type=\"audio\/mpeg\" src=\"https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-player\/2824\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund.mp3?_=1\" \/><a href=\"https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-player\/2824\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund.mp3\">https:\/\/dts.podtrac.com\/redirect.mp3\/netcast.one\/rotm2\/podcast-player\/2824\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund.mp3<\/a><\/audio>","episode_data":{"playerMode":"dark","subscribeUrls":[],"rssFeedUrl":"https:\/\/netcast.one\/rotm2\/feed\/podcast\/rockonthemoney","embedCode":"<blockquote class=\"wp-embedded-content\" data-secret=\"CG9TBsygYS\"><a href=\"https:\/\/netcast.one\/rotm2\/podcast\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund\/\">SHORT &#8211; Dave Ramsey Baby Step 5 Part 1\/2 &#8211; Save for Your Children\u2019s College Fund<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/netcast.one\/rotm2\/podcast\/short-dave-ramsey-baby-step-5-part-1-2-save-for-your-childrens-college-fund\/embed\/#?secret=CG9TBsygYS\" width=\"500\" height=\"350\" title=\"&#8220;SHORT &#8211; Dave Ramsey Baby Step 5 Part 1\/2 &#8211; Save for Your Children\u2019s College Fund&#8221; &#8212; Rock on the Money\" data-secret=\"CG9TBsygYS\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/*! 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