529 – What A Feeling!!!

It’s that time of year: college tuition bills are due. We are facing our last year of tuition and we can attest to how daunting it has seemed at times. But, we have done it and the key has been one major thing – saving!!! Let me tell you about one of the tools we used.

When our son was born, we opened a 529 Savings Plan. We contributed to it on a regular basis. We didn’t make any major contributions but a little bit regularly worked and didn’t kill the budget. It more than doubled over the time it has been around! And, it won’t hurt us when we pay taxes. In short, as the little kid said in the television commercial when Skyping mom, “It’s good. It’s all good!”

It seems that every day a new article shows up criticizing higher education for its costs. Where can you get help? The government doesn’t give much. Lately, the state and federal governments have passed new regulations that only raise costs for colleges and universities (among others). Health care, utilities, and other items raise costs and these raise costs for everyone. So, what can you do?

One thing that everyone can do sounds simple: SAVE. For a child just born, one of the best gifts you can give is to open an account for college. This is nothing new. My parents saved (and I graduated over 40 years ago). My wife and I saved. A little bit each month adds up. Asking family to contribute instead of giving some other gifts that are not really needed can be a huge help. And, compounding interest does its share as savings double over time. A win, for sure!

Opening the bill is daunting. Opening the envelope with the 529 check to help is an incredible feeling! What a relief! I don’t work for a plan so I am not selling anything or recommending any particular plan, but my advice to everyone with a child is simple – open some kind of account to save for college. You’ll thank yourself in 10 or 20 years. Go for it!