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THE PARENT'SPLAYBOOK FOREDUCATION SAVINGSSUCCESSMay 2024

Dear Parents and Guardians,Thank you for taking this important steptowards securing your child's educationalfuture. With the myriad of savings optionsand financial strategies available today,navigating the world of education financingcan feel overwhelming. This guide isdesigned to simplify that journey for you,providing a clear, comprehensive roadmapfrom early savings to college graduation.1Welcome to “From Piggy Bankto Graduation”Understanding the Importance of Early EducationFinancingl y n n l e i g h c o . c o mTogether, we'll explore effective savingsstrategies, decode the FAFSA process, andunveil the secrets to unlocking scholarshipsand grants. Our goal is to empower youwith knowledge and tools to make informeddecisions that pave a bright future for yourchild.The Rising Cost of Education: Infographic on the escalating expensesassociated with higher education and the value of proactive financial planning.

2l y n n l e i g h c o . c o mEducation is the cornerstone ofsuccess, but the path to it isincreasingly expensive.Understanding why early planning iscrucial will set the foundation for thestrategies we discuss. Early savings can mitigate future debt, ensuring that your child can focuson their studies rather than financial constraints.Unlocking the Future: Key Insights intoEducation SavingsEarly savings can mitigate future debt, ensuring that your child can focuson their studies rather than financial constraints.In-depth Analysis of Education Savings AccountsWhen it comes to saving for your child’s education, understanding thearray of available savings accounts is crucial. Each type offers distinctadvantages, tax benefits, and limitations. This section provides a clearoverview of the most popular education savings accounts, helping youselect the best option for your financial goals and your child's future needs.529 PlansOverview: 529 Plans are tax-advantaged savings plans designed specifically foreducation expenses. They are among the most popular choices for familiesdue to their flexibility and tax benefits.

3l y n n l e i g h c o . c o mTax Advantages: Earnings in a 529 plan grow tax-free, and withdrawals arenot taxed when used for qualified education expenses.High Contribution Limits: These plans typically have very high contributionlimits, allowing for substantial savings over time.Flexibility: Funds can be used for a wide range of education-relatedexpenses, including tuition, room and board, and textbooks.Limited to education expenses: non-qualified withdrawals may incurtaxes and penalties.Investment options are determined by the plan and may vary.Benefits:Considerations: Coverdell Education Savings Accounts(ESAs)Overview: Coverdell ESAs are tax-deferred accounts that allow parents andguardians to save for a child's education expenses, from kindergartenthrough college.Benefits:K-12 Expenses: Unlike 529 Plans, Coverdell ESAs can be usedfor elementary and secondary education expenses.Tax-Free Withdrawals: Earnings and withdrawals are tax-freewhen used for qualified education expenses.

4l y n n l e i g h c o . c o mCustodial Accounts (UGMA/UTMA)Overview: Custodial accounts are a way to save for your child’s future that isn’tlimited to education expenses. These accounts are managed by a custodianuntil the child reaches adulthood.Benefits:Flexibility: There are no restrictions on how the funds can be used, aslong as they benefit the child.Ease of Use: Simple to set up and maintain, with no income orcontribution limits.Considerations: Control: The child gains control of the account upon reaching legal age,and can use the funds as they wish.Financial Aid Impact: Assets in custodial accounts are considered thestudent’s assets and can affect financial aid eligibility.ROTH IRA for EducationOverview: Though traditionally used for retirement savings, Roth IRAs can also betapped for education expenses without penalties, offering anotherversatile savings option.

5l y n n l e i g h c o . c o mConsiderations: Contribution Limits and Eligibility: Contributions are limited annually,and eligibility is based on income.Long-Term Impact: Using Roth IRA funds for education can impactretirement savings.Benefits:Tax-Free Withdrawals: Contributions can be withdrawn tax-free at anytime, and earnings are tax-free if used for qualified educationexpenses after five years.Retirement Backup: If not used for education, the funds remainavailable for retirement, providing dual-purpose savings.Choosing the Right AccountSelecting the right education savings account depends on your financialsituation, your child’s educational needs, and your long-term savings goals.Consider factors such as tax benefits, flexibility in usage, contribution limits,and potential impact on financial aid eligibility. It’s often beneficial to consultwith a financial advisor to tailor your education savings plan to your uniquecircumstances.Mastering the FAFSA: ASimplified GuideTackling the Free Application for Federal Student Aid (FAFSA)might seem daunting, but it’s your key to unlocking variousforms of financial aid for college. This concise guide aims todemystify the process, making it accessible and lessintimidating. Let's break it down into manageable steps andtips, with resources for deeper diving.

6l y n n l e i g h c o . c o mFile Early: Mark October 1st on your calendar — that’s when the FAFSAopens every year.Tips for Smooth SailingCheck Deadlines: Beyond the federal deadline, your state and college mayhave their own cut-off dates.Stay Updated: If your financial situation changes, you can update yourFAFSA to reflect those changes.Avoid These MistakesSkipping the FAFSA: Many assume they won't qualify for aid and miss out.Always apply.Procrastinating: Filing late can mean less aid.Inaccurate Information: Double-check everything you enter, especiallyfinancial details and Social Security numbers.For more detailed guidance, including walkthroughs and tips for specific scenarios, the official FAFSAwebsite and Federal Student Aid resources are excellent starting points. By approaching the FAFSA with aclear plan and utilizing these resources, you can navigate the process with confidence and secure the bestpossible financial aid package for your child’s education.Case Study: The Rivera Family’s Journey toFully Fund EducationBackgroundThe Rivera family, consisting of Maria, Luis, and their daughter Elena,embarked on a mission to secure Elena's educational future without theburden of student loans. Living in a mid-sized city with modest incomes, they

7l y n n l e i g h c o . c o mBackground - Cont.knew they needed a strategic plan to navigate the complex world of educationfinancing. Their goal was ambitious but clear: to fully fund Elena's collegeeducation through a combination of savings, scholarships, grants, and wisefinancial planning.StrategyThe Riveras started their journey early, when Elenawas still in elementary school, recognizing thepower of compounding interest in savingsaccounts.1. Education Savings Plan: They opened a 529 College Savings Plan,contributing monthly amounts that fit their budget. They also encouragedrelatives to contribute to Elena’s 529 Plan in lieu of gifts for specialoccasions.2. Scholarships and Grants Search: Understanding the importance ofreducing reliance on loans, the Riveras made it a family project to researchand apply for scholarships and grants. They focused on opportunitiesaligned with Elena’s academic strengths and interests, includingcommunity service and extracurricular achievements.3. Financial Aid: As Elena approached high school graduation, the Riverasprepared to navigate the FAFSA to explore federal and state financial aidoptions. They attended workshops to better understand the process andmaximize their eligibility for aid.

8l y n n l e i g h c o . c o mChallengesThe journey wasn’t without its challenges. Balancing monthlycontributions to the 529 Plan with other financial commitments requiredstrict budgeting and sacrifices. Additionally, the scholarship searchprocess was time-consuming and at times, disheartening due to thecompetitive nature of many awards.Outcome529 Plan Growth: By starting early and making consistent contributions,the Rivera family’s 529 Plan grew significantly, covering a substantialportion of Elena’s tuition.Scholarship Awards: Elena secured multiple scholarships through herhigh school achievements and community involvement, which coveredher books, supplies, and part of her living expenses.Financial Aid: The careful preparation for the FAFSA resulted inqualifying for additional state grants, further reducing the financialburden of college.SuccessesThe family's diligent planning andperseverance paid off in several ways:By the time Elena started her freshman year, the Rivera family hadsuccessfully secured enough funding to fully cover her education costs.This achievement not only provided Elena with the freedom to focus onher studies but also gave her a strong foundation to graduate debt-free, agift that would benefit her far beyond her college years.

9l y n n l e i g h c o . c o mKey TakeawaysStart Early: Beginning the savings journey as early as possible can leveragethe power of compounding interest.Engage in the Process: Making scholarship and grant searching a familyactivity can uncover more opportunities and share the workload.Educate Yourself: Attending financial aid workshops and thoroughlyunderstanding the FAFSA can significantly impact aid eligibility.Perseverance Pays Off: Consistent effort in saving, applying forscholarships, and exploring all financial aid options can lead to substantialrewards.The Rivera family's journey is not just a story ofsuccess; it's a roadmap for parents aiming to fundtheir child's education without resorting to loans.Their approach—early savings, relentless pursuit ofscholarships, and savvy navigation of financial aid—proves that with determination and informedplanning, a debt-free college education is withinreach.This case study serves as a call to action for all families. Start planning now,stay committed to your financial strategy, and educate yourself on theresources available. By emulating the Rivera family’s proactive approach,you can provide your child with the invaluable gift of education, free fromthe burden of debt.Let the Rivera family inspire you to take action today. Begin your journeytowards securing your child's educational future, and remember, the pathto success is paved with persistence and informed decisions.

10l y n n l e i g h c o . c o mLynnLeigh & Company - A Registered Investment AdvisorThis information is provided by LynnLeigh & Co. for general information and educational purposes based upon publicly available information from sources believed to bereliable – LynnLeigh & Co. advisors cannot assure the accuracy or completeness of these materials. The information presented here is not specific to any individual’spersonal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose ofavoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. Theinformation in these materials may change at any time and without notice. Past performance is not a guarantee of future returns. Kelly L. Olczak, CFP®Managing PartnerLynnLeigh & Company LLC1160A Pittsford-Victor RoadPittsford, NY 14534kelly@lynnleighco.com(O) 585-623-5982(M) 585-200-2320As you embark on or continue your journey, remember that planning,persistence, and knowledge are your most valuable allies. We're here tosupport you with resources, guidance, and encouragement every step of theway.Thank you for your commitment to your child's future. Together, we can turnthe dream of a debt-free education into a reality.

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