For parents with very small children, thinking about dropping them off at college for their freshman year may seem very far away. Thinking about saving money for college may seem even farther in the distance. Yet, young parents today know first-hand how expensive college has become — because they’re probably still paying off student loans from their own educations!
While you may not think you have the money to start a college savings plan right now,
Opening a 529 education fund is a smart financial move for families, especially with the rising cost of college. Besides college expenses, the money also can be used to pay for K–12 tuition at public and private schools in many states, including North Carolina.
Many parents choose 529 accounts because the earnings grow tax-free if it’s used for qualified education expenses. Opening an account when children are young can accumulate thousands of dollars in interest and money saved on taxes.
Most parents know how important it is to save for college. It’s essential that parents start saving early and save often. Not thinking about the cost of college isn’t going to make it go away. What parents may not realize is that there’s a terrific way to save for school right in their own backyard. Of course, we’re talking about the 529 plan.
For those of you who aren’t in the know,
Payday should be more than a reminder on your calendar — it should be a national holiday. After all, can’t we celebrate the day that our hard work turns into cold hard cash in our bank accounts? Okay, that may be a little over the top, but you get the idea.
So, what about celebrating payday by allowing your paycheck to work for your family’s future? If you haven’t already set up a 529 college savings account,
Opening an education savings account, such as an NC 529, while your child is young has all sorts of benefits. One benefit is that it allows the account to build until it’s needed for education. Earnings grow tax-free if the beneficiary uses the money for “qualified education expenses.” That term may sound confusing, but it’s intentionally broad. This is because the fund can pay for many school-related costs, …
There is so much to think about when you send your child off to college. You thought ahead when you decided to open a 529 Plan. But before you start taking money out and writing checks to the school, you have some homework to do. Here are some things you need to know about 529 Plan withdrawals.
What are Qualified Expenses?
The money grows tax-free when used for qualified education expenses.
