ADVISORY/Future Not So Bright as Education Savings Crisis Looms; Four Out Of Ten Parents May Not Be Setting Aside Adequate Funds For Children's Education, says Intuit Survey.

Education Writers

ADVISORY...

--(BUSINESS WIRE)

According to a recent study(a) conducted by Intuit, maker of the leading TurboTax(R) tax preparation software, almost 40 percent of parents are currently not saving any money for their children's education. Those parents that are actively saving average only $78.00 a month. With the rising cost of education and related expenses, parents need to start saving sooner, and more, than they expected.

But how do parents know if they are saving enough? Survey results indicate that 39 percent of parents are not aware of what they need to save to pay for college tuition. Intuit is currently hosting valuable tools at www.turbotax.com, such as the College Savings Planner, which can help parents to plan and save for their children's education. The tool, powered by Archimedes Systems, Inc., enables parents to use their real-life numbers to see just where they stand and how much they need to save.

Other results show that forty-one percent of parents are not aware of the tax benefits associated with the various savings methods, such as a Coverdell Savings Account or 529 Plan. Taking advantage of these types of plans, along with new education tax laws for 2002, could mean real savings for taxpayers. Investing in the right kind of education savings account or plan now is the key to investing in your child's future.

For more information about available online tools to help you plan for your children's education, visit www.turbotax.com.

(a) Survey of 1,053 parents conducted by International Communications Research from July 10-23, 2002

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