Every year May 29th (5/29) is celebrated as “529 Day.” It is a day to learn about the benefits of saving early for higher education for children, because a little savings can go a long way to building future dreams. Why “529 Day”? Because 529 College Savings Plans are named for Section 529 of the federal tax code. They are an easy way to save and invest for higher education, whereby anyone can set aside money for a child’s future education and watch that money grow tax-free.
Parents, grandparents, and community members can all help a child realize their potential, by putting money aside for future education. When the child is ready to continue their education, the funds can be used for tuition, room & board, books and more. And the best part is that there are no income tax on those withdrawals. Plus, the depositor gets a Wisconsin state tax credit on their contributions. Watch a quick video about Wisconsin’s 529 plan or visit edvest.com to learn more about 529 plans, Edvest, and Tomorrow’s Scholar.
Not sure about a 529? There are other ways to save for higher education. Extension Educators across Wisconsin encourage families and communities to consider whatever savings tools are the most accessible and the easiest to get started with. Why? Because even as little as $1 to $500 set aside for future education, encourages a child to do better in high school, and makes them three times more likely to enroll in a higher education program, and four times more likely that they will graduate from that program. These are big impacts from small dollars!
Communities can help, too. Many communities are investing in their youth through Universal Child Savings Accounts so that all children in their area get the boost that small savings can provide for their future aspirations. Contact your local Extension Educator for more information.
This 529 Day, encourage a child to have big dreams for their future by setting aside some funds for their education. When combined with other forms of support, like having conversations about their interests and educational aspirations, being involved in school events, and exposing a child to new careers and experiences, these savings will make a big difference.
Article written by Chelsea Wunnicke, Richland County Extension Educator.
Photo by Annie Spratt on Unsplash
The University of Wisconsin-Madison Division of Extension provides affirmative action and equal opportunity in education, programming and employment for all qualified persons regardless of race, color, gender, creed, disability, religion, national origin, ancestry, age, sexual orientation, pregnancy, marital or parental, arrest or conviction record or veteran status.
