Education Plan shares tips to include 529 Plans.

Casper Wong August 17, 2023 Education & Career

Heading Back to School: Planning for the Future with The Education Plan® 529

Santa Fe, NM, Aug. 17, 2023 (GLOBE NEWSWIRE) —

As students and families prepare to head back to school, it’s an ideal time to start planning for future education costs. The Education Plan® 529 education savings plan offers families a way to start saving early and build a solid foundation for their child’s academic journey.

Rising College Costs: The Importance of Saving Now

According to US News & World Report, tuition and fees at universities nationwide have increased by 134% in the past two decades. These costs are expected to continue rising, making it essential to save for education now as part of back-to-school planning.

Executive Director of the Education Trust Board of New Mexico, Natalie Cordova, emphasizes the benefits of a 529 plan. “Families can tackle the rising costs of college and related expenses and reduce or eliminate the burden of student loan debt,” Cordova states. Saving for future education should be factored into back-to-school shopping budgets. Any contribution, whether it’s monthly or yearly, adds up and enables students to pursue their dreams.

5 Ways to Include a 529 Plan in Your Back-to-School Budget

Begin with a family budget: Evaluate your monthly funds and create a viable plan to contribute regularly to your child’s future education.
Open a 529 account: Start with any initial amount you can afford, as there is no minimum contribution requirement. You can continue making contributions whenever you choose.
Inform friends and family: Let them know they can contribute to the account at any time, including holidays and birthdays. Encourage them to give the gift of a brighter future.
Research tax benefits: Contributions to a 529 plan grow tax-free, and qualified withdrawals are also tax-free. Additionally, some states offer additional tax incentives for contributions.
Utilize planning resources: The Education Plan provides tools and resources to navigate education financing complexities. Access online resources such as a glossary of terms, tax benefit information, a detailed FAQ, and a help center.

Flexibility and Accessibility: The Benefits of The Education Plan

Cordova highlights the flexibility of the 529 plan in covering various educational expenses. Funds saved can be used for housing, books, electronics, and other related costs. This flexibility allows families to allocate funds where they are most needed, making the educational journey smoother and more manageable.

The Education Plan is designed to make college more accessible, reduce out-of-pocket expenses, and minimize reliance on loans. With flexible contribution options and access to helpful tools, this invaluable resource empowers families to start investing at any stage of a student’s life.