I can’t believe I’m even talking about college right now, just the thought is giving me a headache as I type. We all want the best for our kids whatever that is– for some it may be higher education after high-school. I’m a college graduate and know the stress that comes from having to apply and pay for school. It’s never too early or late to start digging into those couches and look in between the cracks of your sidewalks for change.
How can you save up for college?
Last weekend you many have seen that we attended a fun event where the kiddies cooked us up lunch with the help of Institute for Culinary Education. While they did all the heavy lifting the adults learned about NY’s 529 College Savings Plan. Yeah, no idea what that was either.
I’ve been schooled on it– literally– now I’m going to school you fine folks.
8 facts about 529 college savings plan
1. The 529 College Savings is a type of investment account you can use for higher-education savings
2. The numbers (529) comes from Internal Revenue Code, which specifies the plan’s tax advantages
3. 529 plans are usually sponsored by states
4. Tax-free money
5. Anybody can open an account for your child as long as they’re a US citizen
6. You can use it to pay for tuition; books; supplies; equipment; expenses for the purchase of certain computer equipment, software, and computer-related services; and certain room and board fees
7. 529 can pay for; Postsecondary trade and vocational schools, 2-4year colleges and postgraduate programs
8. You just need $25 to start
Sounds pretty good right? Insuring your kids future for when they’re ready for a higher education is something a lot of us didn’t have growing up. And what if your kid doesn’t want to go to any type of schooling after high-school? Well, all that money you saved up can be used for an eligible family member or simply take out the money. Just be aware that if you take the money out there will be a 10% penalty tax on the earnings– that may include federal/state tax.
Find out more
And sure many of you might have your doubts because it’s something you haven’t heard of before, but it’s definitely something to sit down with the family and discuss. Check out more by visiting 529’s website and let them know I sent ya!