I want to share with you the things I learned about Why a 529 College Savings Plan is a Great Choice…
and for our Children’s education savings plan; it’s our only choice from now on.
Learning how to manage money is a very important skill, a skill that not every child learns at school.
From a young age, all of my children have been taught about money management. They have earned money for great grades, doing extra tasks around the house, selling baked goods & lemonade stands, helping neighbors with chores, and then we have sat down together and separated that money into four piles – saving, giving, College, and spending. It has been a great way to make sure that they always remember to not only be giving with what they have, but to save for specific and important things in their lives. I trust that my Children will continue this method well into their adult years.
My 17 year old daughter will be a senior in High school next year and she is preparing for College. While her “savings” account may have more than most 17 year-olds because of her awesome money management skills, it still isn’t quite enough to pay for college.
My Husband and I have given a lot of thought into what type of account to open for her, as we naturally want an account that will benefit for more than just storing her money.
So after a lot of research, we decided that we are opening her and our 3 other children a 529 college savings plan!
Here are some of the most common questions we came across while researching and speaking to other Parents about College savings accounts:
What is a 529 College savings plan?
A 529 college savings plan is a type of investment account you can use for higher-education savings. 529 plans are sponsored by States and offer amazing tax savings benefits. As always, research to find out the rules for each State. Beneficiaries can attend college in any state, not just the state sponsoring the 529 plan.
Who can open a 529 College savings plan?
Anyone from a Parent to a friend can open a 529 account and as an account owner, you’ll pick investments, assign a beneficiary, and determine how the money is used.
What can the money in the 529 College savings plan be used for?
Money can be used to pay for anything that’s considered a qualified higher-education expense, including tuition, books, supplies, equipment, expenses for the purchase of certain computer equipment, software, computer-related services and certain room and board fees. It can be used for qualified higher-education expenses at any eligible educational institution, including: klonopin online without postsecondary trade, vocational schools and postgraduate programs. It’s not just a traditional two or four college degree that a 529 account covers.
It seems it was just a year ago that she was going to her first sleep-away camp, and her first Father/Daughter dance. This year she also played in her first Varsity Basketball Team, and had her Sweet 16…
but the realization of her going away to College became so real a year ago; during her ring ceremony. It was then, that I saw just how much my little Princess has grown up…
As we prepare to do College tours and are actively prepping for her going off to College, the amount of money that will be needed for all of the required items has quadrupled from what we initially thought.
This is why I am a big fan of the 529 Savings plan, not only can an account be created to help her for her College expenses, but everyone can deposit money towards her education expenses. This makes it so much easier for our Family and Friends to give her not only a perfect start to her new life, but also ease the troubles of not knowing what to get her for Graduation gifts, they can just simply make a deposit and it’s all taken care of.
Each 529 account has a unique Ugift code. You can easily email the code to friends and family, include it on the Graduation party invitations, or even share it via social media.
How much do I need to open a 529 College savings plan?
You can open an account with as little as $25!
How much can I invest in a 529 College savings plan?
529 account contribution limits are generally high – from $200,000 to $300,000 or more, depending on the State. For the Direct Plan, you can contribute up to $375,000 on behalf of one beneficiary. This amount includes all New York-sponsored 529 savings accounts held for the same beneficiary.
For more information on the NY 529 Direct site, visit www.NYSaves.org
You can also connect with them on Facebook and Twitter and for more College saving tips, below are some useful links…
I have a 529 savings plan for my kids! I love it! I’ve had it now for two years. It’s a great investment and has many benefits!
I couldn’t agree more. I have one for each of my kids and my dad even helps put some money towards their accounts, too!
Thank you for sharing it . Enjoy reading your article
Best regards
Made , Bali island
I’m so glad I found this post, I have tried to put as much into a savings account as possible but college is so expensive it’s not quite enough.
These plans just started when my 30 year old was in elementary school. We were able to save for a couple of years, but I wish we could have used it for more.
I haven’t done good in this department. Luckily my college age kid has been resourceful in finding ways to help pay for her tuition .
This sounds similar to what my parents did for me. I have the Florida Pre-paid plan, and it was such a help! We plan on doing the same for our kids.
I remember when the 529 programs started. They are such a useful tool for helping you save money for your child’s college future.
Both my daughters are done with college and are now working. I think it’s important to teach them about earning and saving at an early age. They can use that skill greatly especially when they are living alone or are starting a family.
This is amazing. I don’t have kids but I believe teaching them about how to handle their money is important. That 529 plan is a good idea, to be honest.
We started one for my son, and I am so glad we did. I feel better knowing he will have money for college, and he won’t have to struggle like I did. I like that family and friends can also contribute. Makes it very convenient.
Always money management is a very important skill, a skill that not every child learns at school. That is why I prefer 529 college saving plan.
Great post! It’s wise to save up for children education. We have government program called RESP. It’s saving for childrens education in college and uni. We start saving when our children are very young.
I have always said they should teach high school kids real life useable skills like money management. Most kids who leave school have no idea how to manage their finances or how taxes work, but don’t worry, they know pythagoras!
i’ve been thinking so much what smart investments i could do. This one is very informational
Very useful topic.
It’s awesome that you taught your kids about saving and handling their money the right way at such an early age. This 529 plan sounds really helpful especially since it will be for their future.
I think this is really important. Starting the kids early with saving money and having financial plans is a great way to help them plan for their future. I’ve never heard of a 529 plan before but it sounds promising.
If I ever have children, they will have 529 savings plans. It’s astonishing to me how few parents know programs like this exist. One of my friends has four children and she loves knowing that all 4 have their college tuition paid for already without even having to think about it!
I’ve been reading more and more about 529 savings plans. Seems like something that is so beneficial to set up early on! Saving for college is so important, so this will be helpful when I start a family.
I haven’t heard of this before but it’s such a great idea! It’s so important to save and this is agreat idea.
I like that you’re getting the same plan for all of the kids. We did that too, and it made things easier when it was time for them to graduate.
This is a good idea. College education is not cheap and we, as parents, must prepare for those expenses. I think the 529 college savings plan would help give our children a gift that no one can steal from them – a good college education.
My husband and I have been looking for a good option for the kids college savings. This looks perfect!
A 529 college savings plan is definitely a good way to save up for your child’s college costs. I like the option of having people being able to add to the fund too.
thanks so much for sharing this information something I wish to look further into it I have 3 grand-children to look out for now
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College expenses are on the rise and tuition is just not feasible without a savings plan. Great job getting started for your children!
Good for your daughter and her excellent money management skills! I think this is a helpful resource for parents that are sending their children to college.
It is so amazing how fast those years between birth and high school graduation flies, isn’t it? We have three daughters in college, and another leaving in another year and a half. It’s a struggle, even with savings.
We have a 529 plan for both my kids and highly recommend it! Plus it makes having friends and family contribute so easy!
This is awesome! Thank you for the post! I really need to start planning for a good college plan.