With college costs rising at 8% annually, experts agree that saving for college is crucial for today's youth to be able to attend college. That said, there are many factors that contribute to a successful savings strategy. One of the most important factors is utilizing a 529 college savings plan, sometimes referred to as a 401(k) for kids, which accrues interest over time and is tax-deductible.
An Introduction to 529 Plans What is a 529 plan? There are two types of 529 plans: pre-paid tuition plans and college savings plans. All fifty states and the District of Columbia sponsor at least one type of 529 plan. In addition, a group of private colleges and universities sponsor a pre-paid tuition plan.
College savings: a 529 Plan // prepare for covering a part of your child's education costs with a 529 plan, it allows you to save for her college tax-free. this infographic shows how it works. $180,000