Whether your children are in grade school or high school, they’ll be leaving for college or trade school before you know it. With the cost of education rising, now is the time to prepare for that day.
Starting to invest when your child is born is often a great way to build a strong financial future. Even if your children are older, you can still make progress and potentially reap tax benefits by contributing to a 529 education savings plan. Contributions are made with after- tax dollars, accumulate with no federal income tax and can be withdrawn for qualified education expenses federally tax free.
Unfortunately, half of Americans don’t know what a 529 plan is, and fewer than a quarter have one, according to 2024 research from Edward Jones and Morning Consult. One way to keep a 529 plan top of mind is to recognize May 29 (5/29) as Save for Education Day.
