The average annual cost of attending a private, four-year college hit over $48,000 last year. That’s more than double what it would have cost 20 years ago, and the cost for public institutions has grown at a similar rate.
You can’t just pay your kids for no reason. You have to justify that the rate you’re paying them is reasonable for the work they’re doing. On the other hand, under the new tax code you can pay someone up to $12,000 a year before having to worry about federal income taxes. And 529s are investment plans, just like your 401, meaning they’re exposed to market volatility.
At the same time, we’ve seen the rise of apprenticeship programs and accelerated education programs like coding boot camps, which have grown rapidly.
Good decision