The College Savings Plans Network is thrilled to participate in Money Smart Week 2017! Like the many organizations involved this year, we strive to educate and motivate American families to adopt smart financial habits. With our focus being college savings, another important event has been on our radar: National Decision Day.
As May 1st approaches every year, high school seniors are pressured to make their final college decisions. In a perfect world, the stress of paying for college wouldn’t deter high school seniors from choosing their dream schools. In reality, financial worries and the anticipated stress of paying off student loans weigh heavily on the minds of many college bound students.
Though you may realize the importance of saving for college, it’s also vital to adopt a smart college savings method. One option is to use a 529 college savings plan, which is simple and flexible to use. Earnings in a 529 plan grow free from federal and state income-tax. In addition, many states offer a state income tax deduction or credit for contributing to a 529 plan.
According to our 2016 Year-End 529 Report, the total number of 529 accounts increased to 13 million in 2016, and 54% of those accounts received contributions. It is encouraging to see parents prioritizing higher education—and strengthening their children’s future college decisions!
Written By: Alabama State Treasurer Young Boozer, Chair, The College Savings Plans Network