College Education Planning for Families

Preparing for Tomorrow’s Education Costs

Funding a child’s education is one of the biggest goals many families face. Whether you’re saving for the University of Minnesota, a private college out of state, or graduate school down the road, costs are significant and rising. Crane Capital Management helps families in Minnesota and across the country create college education planning strategies that balance this priority alongside retirement, home, and other financial goals.

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Strategies for Saving and Paying for College

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529 College Savings Plans

529 plans offer tax-advantaged growth for education expenses. In Minnesota, families may qualify for a state tax deduction or credit on contributions. We guide clients on how to use these plans effectively, including whether parents, grandparents, or others should own the account.

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Custodial Accounts (UTMA/UGMA)

These accounts can be helpful in certain cases, though control shifts to the child at the age of majority. We evaluate when custodial accounts make sense and how they may affect financial aid eligibility.

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Coverdell ESAs

For families with smaller, targeted education savings needs, Coverdell ESAs can be an option, though contribution limits apply.

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Trusts for Education

For families with complex wealth or multigenerational goals, education trusts coordinated with estate attorneys may be appropriate. We work closely with your legal team to align these strategies.

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Scholarships and Financial Aid

While we don’t provide scholarships, we help families understand how assets are counted in FAFSA and other aid calculations, so your savings plan supports rather than hinders financial aid opportunities.

How Education Funding Fits Into the Bigger Picture

We begin by clarifying how much of the education cost you’d like to cover and what role you want your savings to play.

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We analyze tuition projections, family assets, and your retirement plan to determine a realistic savings target.

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We recommend the right savings vehicles, including 529 plans, custodial accounts, or trusts, based on your situation.

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We revisit the plan regularly, adjusting for market changes, tax law updates, and shifting family goals.

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Education Planning FAQs

  • How much should I save per month?

    We calculate savings needs based on your child’s age, the type of school you’re targeting, and how much of tuition you intend to cover. For example, saving consistently from birth can cover a larger share of projected costs.

  • What if my child gets a scholarship or doesn’t go to college?

    529 funds can be reassigned to another beneficiary or used for graduate school. Withdrawals for non-education expenses are possible, but subject to taxes and penalties on earnings.

  • Should I pay off my own student loans or save for college?

    It depends on your financial picture. Often, we recommend balancing both—meeting loan obligations while also making steady contributions toward education savings.

  • Can I use 529 funds for private school or other education?

    Yes, within IRS limits. 529s can cover certain K–12 expenses, vocational training, and graduate-level costs, offering flexibility if your goals extend beyond undergraduate education.

Plan Today for Tomorrow’s Education

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