The NC 529 ® Plan Encourages Parents to Talk to Their Kids about Saving Money on April 28
According to a study out of the University of Cambridge, most children develop money habits while in elementary school which they will carry the rest of their lives. These habits are formed, in large part, by watching how their parents interact with and make choices about their money. That’s why the NC 529 Plan (also known as North Carolina’s National College Savings Program) hopes parents receiving tax refunds will consider using that money to boost their children’s college savings accounts.
“The earlier parents include young children in conversations about managing and saving money, the better financial skills the children will develop,” says Michael Ochsenhirt, NC 529 Savings Program Services Manager. He continues, “When they include discussion about saving for college, parents not only help their children gain valuable financial skills, they help them visualize college in their future.”
According to the authors of a study from the University of Minnesota, children learn their money habits from the examples set by their parents, teachers, and other trusted adults. And studies have shown that when adults don’t teach valuable money management skills, the effects on the child’s ability to manage money down the road can be far-reaching.
For parents who want to share money-saving lessons with their kids:
Earnings on NC 529 Accounts are free from federal and North Carolina income taxes as long as money is used for qualified higher education expenses such as tuition, room and board, books, fees, computers and other required equipment. And the money isn’t just for use at North Carolina colleges and universities. It can be used at almost any college, anywhere in the country.
With highlights of the NC 529 Plan available at NC529.org and additional detail on the savings program on the College Foundation of North Carolina website, CFNC.org, it is easy to get comprehensive and free information and guidance about planning, applying and paying for education beyond high school. To learn more, call toll-free Monday – Thursday 800-600-3453 (for NC529) or 866-866-2362 (for CFNC) between 8 am – 8 pm or Friday 8 am – 5 pm.