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How much does collegereally cost (and how to save for it).

When it comes to paying for your child's college, tuition is just the beginning. And while financial aid strategies, like scholarships and grants can help with the cost of classes, other expenses that make up the net cost of college can really add up. Here are some averaged cost examples.

CIT Bank College Savings infographic
CIT Bank College Savings infographic

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A Graduate Course in College Saving.

Custodial Accounts

A popular financial tool to help parents save for their children's college is a Custodial Account, also referred to as an UTMA (Uniform Transfer to Minors Act) account. It's helpful to know some of the basics.

Contributions to a Custodial Account are considered gifts and a portion of your earnings may be free of federal taxes. 8

Custodial Accounts can be used for college costs. They also have the flexibility to be used for other unforeseeable expenses.

You control the funds of your Custodial Account, unlike 529 plans which are operated by a state or educational institution.

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Product
APY**
Minimum balances
Available as IRA
Available as Custodial
APY**
Minimum balances
Available as IRA
Available as Custodial