To help educate parents on saving money for college, the College Savings Plans Network has declared Wednesday a national “529 College Savings Day.”
Why Wednesday? Well, May 29 is 5/29 – and that’s the name of the popular tax-advantaged savings plans parents can use to help chip away at the high cost of higher education.
Americans have invested more than $190 billion in 529 College Savings Plans. Nearly every state offers one, though investors have no obligation to use their home state’s plan. They can use whichever appeals to them.
The savings network offers these two tips about saving:
Define your savings goals Determine how much you ultimately want to save for your child's education. Do you want to save for tuition only or include room and board? All four years of college or just two? Public or private?
Make routine reviews Assess your account regularly to determine if the risk tolerance or life circumstances have changed. Events like having another child or a change in job status can alter how much you can afford to save.
For more information, visit collegesavings.org.