U.S. Prepaid College Savings Plans Shine as Inflation Soars

[{"selector":"#anim-722078b5-a38e-4884-ba86-be587ac9096e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-16.671874797766222%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google Seacoast Investment Services senior vice president foresight to make a one-time investment in Florida's prepaid college tuition plan for her daughter Jessica in 2014.

[{"selector":"#anim-a46862c3-1cba-4fc1-a0b9-c556e92800fe [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-32.125244032161675%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google Jessica, who has her tuition and expenses paid for, is currently a sophomore studying finance at the University of Florida in Gainesville.

[{"selector":"#anim-9b3550ff-096d-4c7c-95b6-8e1be71e30b9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.18051616992029%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google Prepaid plans are those that let you buy years of credit or education at a set rate.

[{"selector":"#anim-6a1718da-f718-487d-90ac-d03258b12a82 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.193749904088286%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google As of July, the US had an annual inflation rate of 8.5%, making it tempting to freeze future expenditure at the current level.

[{"selector":"#anim-023a7833-18a7-488c-9ad7-4a38417b155d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.246337776828504%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google This is especially true in higher education, where four-year state universities now have an average annual sticker price of $10,740.

[{"selector":"#anim-46c37d6e-9b04-41d3-a097-98763a79fa1e [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google A minor portion of the market for college savings are prepaid accounts.

[{"selector":"#anim-41afde0a-6d49-46ee-92e1-f6871d80b8ff [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.19524326692921%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google Around 931,000 of these accounts nationwide had assets totaling $24 billion as of June 30.

[{"selector":"#anim-77f30b84-7c05-444b-a85f-04e17ad15e40 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-34.18051616992029%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Credit by Google Prepaid tuition plans are not for everyone. In fact only a few states are giving them.