No matter how you pay for college, understanding basic financial concepts is important. This includes liquidity, risk, interest/returns, inflation, taxes, financial aid impact, and fees. Liquidity refers to how easy it is to access money from an account. Risk is the chance of losing money. Interest and returns are money earned over time. Inflation measures rising prices, so returns should exceed inflation. Accounts are taxed differently and can affect aid. Always ask about fees, penalties, minimums and maximums when choosing accounts. Getting informed helps make the best choices.

2. Learn the Basics No matter how you plan to pay for college, understanding common financial terms and concepts will help you make decisions that are right for you.

4. Are there rules about if/when I can get my money out?

5. Are there penalties for early withdrawal?

6. Do I need access to my money?

9. Interest/Returns These terms refer to money that your account collects over time.

14. Find out whether the account or its earnings count as your child’s assets or as yours. Children’s assets can decrease financial aid eligibility by the greatest amount.

16. Are there any penalties? If so, for what?

17. Is there a minimum amount I have to put into this account?

19. For more easy tips and information, visit www.thebeehive.org.