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How to Use Technology to Track and Improve Health Goals

How to Use Technology to Track and Improve Health Goals How to Use Technology to Track and Improve Health Goals 1. Wearable Fitness Trackers Devices like Fitbit, Garmin, or Apple Watch provide real-time insights into your activity levels, heart rate, and sleep patterns. Seniors can use these devices to set daily step goals, monitor exercise, and even receive reminders to move. Learn more about choosing the right wearable tracker here. 2. Health Apps Smartphone apps like MyFitnessPal or MySugr simplify calorie tracking, meal planning, and even diabetes management. They offer personalized feedback based on user input, making it easier to stick to dietary or exercise goals. Check out reviews of the top health apps on Healthline. ...
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Investing in Your Grandchild's Future: 529 vs. Coverdell College Savings

As a loving grandparent, you undoubtedly want the best for your grandchildren, and one significant way to secure their future is by contributing to their education. With the ever-increasing cost of higher education, helping them build a financial cushion for college can be a priceless gift. In this blog post, we'll explore two popular college savings options for grandparents: 529 plans and Coverdell Education Savings Accounts. Additionally, we'll delve into the impact of these savings accounts on the Free Application for Federal Student Aid (FAFSA), examine the staggering rise in college costs compared to wages, and highlight how contributing to your grandchild's college savings is an investment in their future.

529 Plans vs. Coverdell Education Savings Accounts

529 College Savings Plans

529 plans are state-sponsored education savings accounts designed to help families save for future education expenses. Here are some key features of 529 plans:

  • Tax Benefits: Contributions to 529 plans are made with after-tax dollars, but earnings grow tax-free, and withdrawals for qualified education expenses are also tax-free at the federal level.
  • Flexibility: These plans are highly flexible, allowing you to change beneficiaries or use the funds for a variety of qualified education expenses, including tuition, books, and room and board.
  • High Contribution Limits: While contributions are subject to annual gift tax exclusion limits, many states allow generous contribution limits.
  • No Income Limitations: There are no income restrictions for contributors, making it accessible to most grandparents.

Coverdell Education Savings Accounts

Coverdell Education Savings Accounts, formerly known as Education IRAs, are tax-advantaged accounts designed for educational expenses. Here are some key features:

  • Tax Benefits: Like 529 plans, contributions are made with after-tax dollars, and earnings grow tax-free. Qualified withdrawals for education expenses are also tax-free.
  • Use Beyond College Coverdell accounts can be used for primary and secondary education expenses, not just college.
  • Income Limits: There are income limits for contributors, and contributions are subject to annual contribution limits.
  • Investment Control: You have more control over the investments within a Coverdell account.

FAFSA Impact

Both 529 plans and Coverdell accounts have an impact on the FAFSA, but the degree of impact differs. Assets in a grandparent-owned 529 plan or Coverdell account are considered when calculating a student's Expected Family Contribution (EFC). However, the treatment of these assets is different:

  • 529 Plans: Assets held in a grandparent-owned 529 plan are not reported on the FAFSA, but withdrawals made to pay for a grandchild's education are counted as student income in the subsequent year. This can affect eligibility for need-based financial aid.
  • Coverdell Accounts: Assets in a grandparent-owned Coverdell account are considered a student asset, which can significantly impact the EFC. This may reduce the student's eligibility for financial aid.

It's essential to weigh the impact on financial aid when choosing between these savings options.

The Soaring Cost of College

The cost of a college education has risen significantly over the years, far outpacing wage growth. In the 1980s, the average cost of a four-year degree was considerably lower than it is today. According to the National Center for Education Statistics, the average annual tuition and fees at public four-year institutions in 1985-1986 was $1,290 (in 2021 dollars). Compare this to the average cost today, which exceeds $10,000 per year at public institutions.

Investing in Your Grandchildren's Future

The competitive job market and the increasing importance of a college degree make contributing to your grandchild's college savings an investment in their future. By doing so, you provide them with the financial resources and opportunities to pursue their dreams and secure a brighter future.

In conclusion, contributing to your grandchild's college savings through 529 plans or Coverdell accounts can be a meaningful way to support their education. Be mindful of the impact on financial aid eligibility, consider the differences between the two options, and consult with a financial advisor to make an informed decision that aligns with your grandchild's future goals. Your investment today can pave the way for their success tomorrow.

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