The school year will soon be here.
If you have young children, you’re one year closer to the day when they may be headed off to college.
When that day arrives, will you be financially prepared?
College is expensive - nearly $29,000 a year for in-state students at a public college or university and about $60,000 a year for private schools, according to the College Board.
And even with scholarships and financial aid, you could face a hefty bill.
One way to help save for college is through a 529 education savings plan.
Your earnings can grow tax-deferred, and your withdrawals are federally tax-free when used for qualified education expenses.
Depending on where you live, you might get additional tax benefits for investing in your state’s 529 plan.
A 529 plan can also be used for K-12 expenses in some states, and for qualified apprenticeship programs.
And if you’ve named a child as beneficiary of a 529 plan, and that child doesn’t pursue any post-secondary education, you can switch beneficiaries to another family member.
If you’d like to invest in your children’s future education, a 529 plan can be a good choice - so study up on it soon.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson and Hawes Dickerson. Members SIPC.
