Saving for Children’s College Education

Yilmazer, T. (2008). Saving for children’s college education: an empirical analysis of the trade-off between the quality and quantity of children. Journal of Family and Economic Issues, 29(2), 307-324.

Brief Description: This paper examines the effect of children’s college expenses on household savings. Using the actual amount of parents’ financial support, the model estimates the expected expenditures on children’s college education and investigates the effect of expected expenditures on parents’ savings. The results show that households save in advance …

Fact Sheet Explains Options for Saving for College

The fact sheet lists information on personal investment accounts; traditional Individual Retirement Accounts; Roth IRAs; 401(K) and 403(B) retirement plans; custodial accounts, such as a Uniform Gift to Minors; Coverdell Education Savings Accounts; 529 plans; and U.S. Savings Bonds.

Released March 26, 2009

COLUMBUS, Ohio — Parents who are trying to save for their children’s education but aren’t sure where to start may find guidance in a four-page fact sheet, “College Savings Options,” from Ohio State University Extension.

The fact …

Emergency Cash Reserve

Emergency Cash Reserve

Setting aside money to meet unexpected expenses provides a financial safety net and allows you to take advantage of financial opportunities as they arise. Most experts recommend an emergency fund equal to 3 to 6 months living expenses; however, you do not need to set aside this total amount in a low-yielding passbook, certificate of deposit, or money market account. The amount of your emergency fund depends upon your age, health, job outlook, and personal financial situation …

Investment Return

Total return is the profit (or loss) on an investment. It is a combination of current income (cash received from interest, dividends, etc.) and capital gains or losses (the change in value of the investment between the time you bought and sold it). The published rate of return for a selected investment is usually expressed as a percentage of the current price on an annual basis. However, the real rate of return is the rate of return earned after inflation, …

Stock

In finance: A certificate representing a share of ownership in a company. Stock is the ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets. There are many kinds of stocks, the most widely known being common stock, which usually entitles a stockholder to vote in the election of directors and other corporate matters.

In viticulture: Grape variety used as the underground portion of a grafted vine onto which the scion

Blue-Chip Stock

A term, derived from the most expensive chips in a poker game, used to indicate the stock of companies with long records of growth and profitability; i.e., the company has been growing and has been paying dividends for a long time.…

Annual Report

A report that public companies are required to file annually that describes the preceding year’s financial results and plans for the upcoming year. Annual reports include information about a company’s assets, liabilities, earnings, profits, and other year-end statistics. If the public can buy stock in a company, that company has to issue a report every year that explains how well it did in the past year and what its strategy is for next year. The report includes what the company …

Investing Action Steps

The steps below suggest important actions for you to take to establish a solid foundation for future investing activity. Once completed, you will be ready to begin developing a personal investment plan.

Check each action step as it is completed.

  • Review your current financial holdings and determine if they are in saving or investment vehicles.
  • Determine the rate of return for your current financial holdings.
  • Establish short-, intermediate-, and long-term financial goals for you and your family. Estimate the length