Your employer may have established some of these savings plans through your benefit package. Talk with your employer, a lending institution or your investment counselor for more information. The State developed the Indiana Family College Savings Plan as a way to encourage parents to set aside funds for college education. This plan can be opened as soon as a child has a social security number. The fund allows parents to save money and earn interest using payroll deduction or other contributions.
Stocks are shares of a company.
When you buy stocks you re buying a small part of that company. As the company goes, so goes your stock increasing or decreasing in value. Usually people who invest in stocks can afford some financial risk and make time to actively manage their accounts. Mutual Funds include a combination of stocks and bonds and are usually less risky than individual stocks. U.S. Series EE Savings Bonds provide income that is tax-free if purchased by the parent after age 24, used to pay tuition and required fees, and if the parent meets the income guidelines established annually by federal tax law.