HCE promotes ‘529 Day’ savings
May 29 is National 529 Day – reminding families and friends that it has never been easier to help save for a child’s future. By contributing to a 529 savings plan, you help prepare a child for whatever path they choose.
As part of 529 Day, Clark Country Extension is busy spreading the message about the importance of starting early to save for children/grandchildren’s educational expenses.
“It’s not just about how much money parents are able to save, when children see their parents setting aside money for their future education and career training, it sends a powerful message to kids about the importance of their future,” said Nancy Vance, Extension family living educator.
According to the most recent statistics, Clark County is not utilizing the Wisconsin Edvest College Savings Program, which is the state’s 529 plan. A 529 plan is an investment account that offers tax benefi ts when used to pay for qualified education expenses for a designated beneficiary. Signing up for the Edvest plan is free and easy. Their website will walk you through the process. Edvest offers ongoing support as well as a digital toolkit with everything you need to know about saving for college.
Research on college savings accounts for young children suggests that children are four times more likely to enroll in college and about five times more likely to graduate from college than a child with no savings account. Higher enrollment and graduation rates were found even in families with less than $500 saved for their child’s future education. Having this special savings account contributes to a “college-bound identity” when children know they are expected to continue studying for their future profession after high school.
Children with a “college-bound identity” are found to do better in high school, are more engaged in school, and even get higher grades. Having a designated college savings account is also linked to more interaction between parents and children about finances and conversations about the future. Parents also feel good investing in their child’s future and report higher levels of self-esteem and self-confidence when they are able to set money aside.
“It’s never too late to set aside a small amount of money earmarked for future education, whether your child is 6 or 16, reminds Vance. “And if families don’t have the money, all the more reason to have frequent conversations with children about their future goals.”
To find resources and tools to help with saving for college, visit the UW-Extension website: http://fyi.uwex.edu/collegesavings . For more ideas and strategies about household budgeting, contact Vance at 715-743-5121.
