National 529 Day is approaching on May 29th. If you’re a parent or grandparent that is saving for your child or grandchild’s college education, a 529 plan is an excellent way to save.
There are numerous advantages to establishing a 529 investment in your college savings plan. These include:
- Tax Benefits
- Favorable Financial Aid Treatment
- High Contribution Limits
- Low Maintenance
Now more than ever, it is important to understand the tools available to utilize to ease the burden of saving for college.
Is college affordable? In the past 20 years, the cost of college tuition for public universities has risen 165%. Based on recent data, college students and their families have been taking on more debt, and it is taking them longer to pay it off. Recent studies show that in 2021, 34% of adults aged 18 to 29 years have student loan debt, making them more than twice as likely than adults in any other age group to have student debt.1,2
It’s never too soon to begin saving for your child’s education. Many parents start as soon as a child is born. Some parents begin preparing before their children even arrive. If you plan on having a family “someday,” it may be smart to start preparing now. If your child is already in high school, you may feel it is too late to start saving for college, but there’s still time. Perhaps, consider ways to manage your monthly expenses and increase your cash flow now.
The simple fact is the sooner you plan, the better. If you have not begun preparing, start now – there is no better time to get the proverbial ball rolling. You may be surprised how a little preparation now can make a big difference in the years to come. Let’s set up a call to speak about saving for your child or grandchild’s education.
If you have any questions you can reach us at 215-579-5601 and we also want to remind you that we have a financial literacy section accessible through the top navigation bar on our website.
As always, if you have any life changes or updates that you need us to attend to (i.e., new job, promotion, marriage, new baby or grandchild, etc.), please do not hesitate to contact us.
Stacy Brilliant, Chief Operating Officer
1. Usnews.com, September 17, 2020
2. Educationdata.org, August 17, 2021