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College Savings Day 5/29 Shows How You Can Save For College

Posted on Jun 3, 2019 with No comments

Jun 3, 2019

May 29 is referred to as College Savings Day, a play on the date 5/29, as it pertains to the College Savings Account's formal name, the 529 savings plan.

Research has revealed that post-secondary education can bring about increased earnings and better job prospects, but the increasing expense of tuition has actually ended up being a problem for many households.

In truth, a new report finds that since 2009, most families have actually seen state school tuition fees jump 85%, the largest rise in the country. In other words, education is costly, and if you want your son or daughter to finish college debt-free (or as close to debt-free as possible), you could consider saving now.

The benefit of doing this with a 529 account is it was established exclusively for the objective of helping families prepare for the overall expense of college.

Here are a few more reasons that a 529 account is worth looking at:

College is expensive. The earlier you begin saving, the more time to allow your savings to work for you. Even saving small quantities will ultimately gain greater returns down the road.

Cover more than just university tuition. 529 savings accounts can be utilized to pay for all types of the costs related to school, including books, tools, laptops and other essential materials.

Put to use towards technical education. In addition to tuition and fees at public or private colleges, 529 savings can also be used toward trade schools, featuring culinary schools, technical colleges and other courses. These types of schools are ending up being progressively popular due to the required abilities they can teach in addition to the increasing cost of common universities.

Tax benefits. The state of Arizona provides an annual Arizona state income tax deduction for 529 plan contributions of as much as $2,000 for personal tax filers, and up to $4,000 for married couples filing jointly. (Please consult your tax consultant regarding potential tax benefits. All details provided here is meant as a practical source of information. The info is general in nature, is not complete, and may not apply to your specific circumstance.).

Lower student debt. A 529 savings account can help relieve the problem of student loans and lower the amount borrowed.

Flexibility. There are generally two various types of 529 savings accounts: the money market savings and the 1 year time savings accounts. The money market option is a liquid account that permits deposits and withdrawals any time. The one-year time cost savings option is a time account that offers low-risk financial commitment opportunities and greater interest rates by securing your deposits for a specified period of time.

529 Plans are the tools you need to save for college expenses. Open one today!


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