Question

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other related expenses are substantial and are expected to rise in the future. To prepare for this financial goal, the couple may consider various savings and investment strategies, such as opening a dedicated college savings account, investing in a 529 plan, or setting up a trust fund. Planning and starting early can help them build a sufficient college fund to provide their child with the educational opportunities they desire.

Answer 1

To prepare for the cost of their child's college education, the couple can consider savings and investment strategies such as dedicated college savings accounts, 529 plans, and trust funds. Starting early and planning ahead will help them build a sufficient college fund.

Step-by-step explanation:

When planning for a child's college education, it is important to start early and consider various savings and investment strategies. One option is to open a dedicated college savings account, which allows the couple to set aside money specifically for education expenses. Another option is to invest in a 529 plan, which provides tax advantages for saving for college. Finally, setting up a trust fund can also be a way to save for the child's future education. By planning and starting early, the couple can build a sufficient college fund to provide their child with the desired educational opportunities.