Guest Author - Secola Edwards

Planning for college costs for one child at a time can be daunting for a parent, so when parents of twins begin to add up the expenses, the plan to send both kids to quality schools can feel more like a dream than a reality.

With costs spiraling upward, it's not out of the question for a potential college student to expect to rack up over $100,000 in tuition and fees during a four-year stay at a US college or university; as a matter of fact, it’s becoming the norm. Factor in two students entering college at the same time and a very nice home could be purchased during that time frame for about the same price.

What are parents and caregivers of multiples to do? Plan and plan early.

If you are a parent of young twins; twins who are still in elementary school, perhaps a 529 Plan would be a good fit for your family. A 529 Plan is an education savings plan that acts much in the same way as a bank account. The longer the funds are invested, the more the account accumulates. So, planning while your twins are in the early childhood stage offers the best opportunity for a healthy investment return. If you’re twins are older, however, there are investment options within the 529 Plan for your children as well.

Each state has it’s own 529 Plan. I have included a link at the end of the article to the website www.savingforcollege.com, which includes program contact information for a specific state.

What I like best about the 529 Plan is the flexibility. For example, let’s say your family resides in Texas and one twin chooses to attend a school in Texas and the other twin chooses a school in Michigan. The 529 Plan does not restrict what state your kids attend college.

You may also choose to thoroughly research each state’s plan to compare the investment performances of each state’s plan. Following the above example, a Texas resident can invest in a Florida 529 and send their twins to school in Michigan and Ohio if they choose to.

Do keep in mind that investments of any kind require research and placing trust in an advisor who may be facilitating the transactions. Try to conduct as much research as possible before investing funds, including checking the background and experience of any financial advisor.