PHILADELPHIA, June 4 /PRNewswire/ -- As National College Savings Month
rolls around once more, much of the national discussion is focused on
alarming headlines such as turmoil in the credit markets, tuition figures
reaching obscene new heights, and parents saying they are more concerned
than ever about being able to pay for their children's education. But an
even greater concern may be that as a result of these terrifying headlines
and sound-bites, parents are discouraged from saving for their child's
future.
According to Rebecca Matthias, President and Founder of Futuretrust,
this "sky is falling" mentality leads too many parents to think that the
task of saving for college is pointless. "They're wrong," says Matthias.
"The fact is, planning to pay as much of the cost as possible with savings
is the best way to prepare for college. For young families, the situation
is not as dire as it seems."
OK, first the bad news. It's true: Parents with high school seniors and
no savings have a problem. Plus, since it has been reported that college
costs will increase yearly at a rate of 6-8%, children born today will face
tuition costs that are three to four times the current average amount.
Federal student loans are becoming more challenging to secure. Many private
institutions have reached an unprecedented sticker price of $47,000 a year
and most parents are extremely worried about the future.
Now the good news. It doesn't make for as many shocking headlines, but
nevertheless, there is more than one silver lining, especially for young
families with time on their side. Consider this:
-- Most of the college cost figures bandied about are not reflective of
the costs most families will actually face, especially for state and
community colleges.
-- Many fine institutions offer a great deal of help to students enrolled
there. In fact, many are, due to pressure from Congress, replacing
more loans with grants that do not need to be repaid.
-- By opening a tax-free 529 plan when their child is born, parents
realize that saving for college is a lot easier than they had expected.
-- Credit card reward programs such as the Futuretrust MasterCard(R)
automatically put rebates earned from everyday spending into a 529 plan
of one's choice at no cost. Forget airline miles -- money in your 529
is far more valuable.
-- In many states, contributions to a 529 plan are tax deductible.
-- Compound interest is a family's best friend!
"Thinking about saving for college can feel overwhelming, especially
for young families who hear about how frightening tuition costs will be 10
or 15 years down the road," says Matthias. "But things are not necessarily
as insurmountable as all those headlines suggest. It is possible to take
matters into your own hands and start saving when your child is born. Most
parents will be delighted to see how fast those small amounts grow over the
years and how much of a dent they truly can make."
The Futuretrust college savings program was created to educate families
about college savings, and urges them to begin saving for their children's
education early on -- even prior to their birth. Parents have the chance to
get a head start on college savings through the Futuretrust
MasterCard-linked college savings program which automatically deposits
rebates into a tax-free 529 college savings plan of their choice. Unlike
other programs, Futuretrust can be linked to any 529 plan and Futuretrust
can help members open a 529 plan through partners such as TIAA-CREF(R) and
AXA Advisors(R). There is no cap on the amount of rebates that can be
earned, so there is no limit to the amount members can save. Members earn a
MINIMUM of 1% back every time they make a purchase.
About Futuretrust
Futuretrust(R) is a MasterCard(R)-linked college savings program that
enables families and friends to save for college through their everyday
spending. Every time a purchase is made with the Futuretrust MasterCard, a
minimum of 1% is automatically contributed to any tax-advantaged 529
college savings plan of the member's choice. Members also earn up to 10% in
additional college savings when they use the Futuretrust MasterCard at
thousands of partners in the Futuretrust Preferred Merchant Network
consisting of major retail chains, catalogs, restaurants, and on-line
merchants. Members can also earn college savings rebates when they buy,
sell, finance, or refinance a home. Futuretrust is a no cost program.
Membership is available online at http://www.futuretrust.com, by calling
1.888.trust68, or in store at any Motherhood(R) Maternity, Mimi
Maternity(R), A Pea in the Pod(R) and Destination Maternity(R) location.
SOURCE Futuretrust
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Related links:
http://www.futuretrust.com
http://www.prnewswire.com/comp/581877.html /
CONTACT:
Judie Ashworth of Futuretrust,
+1-215-873-2283, Jashworth@motherswork.com; or Linda Falcone of
Blue Sky Communications, +1-212-995-1777, linda@blueskypr.com,
for Futuretrust
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