In this economic environment, education can be quite a financial burden. In today’s Marino on Money, Ross Marino tell us about setting up college funds. A viewer asked, “I would like to set up a college fund for my 11-year-old grandchild. Which fund would your recommend and why?” There are many ways to help your grandchild pay for college. Considering what a college degree is worth, it is good investment for your family. According to the US Census Bureau in a report titled, 'The Big Payoff', a college degree is worth a lot of money. The US Census Bureau said a high school graduate can expect, on average, to earn $1.2 million over his or her lifetime. Someone with a bachelor's degree should expect $2.1 million. For a master's degree, you can expect $2.5 million. That is a tremendous difference in lifetime earnings, so helping a child or grandchild with college expenses is a worthwhile investment, assuming the student doesn't major in partying, and flunk out. But if the student graduates, his or her potential earnings are well worth the cost. If you want to help your grandchild, the first decision is now or later? Do you want to start saving money now a college education, or just prepare to help them when the student is ready attend? The next decision is whether you want to keep control of the money, or you want to give or gift the money. We'll look at each of those decisions tomorrow.
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