Important things to know about 529 Plans

Aug 3, 2022Financial Literacy

If you are the parent or guardian to a child, the thought of them going to college might feel very far away, but anyone with older children will tell you, the time goes by in an instant.  That’s why it’s so important to think about saving for future education.  With the cost of higher education going up seemingly year after year, it is never too early to begin setting funds aside for their educational future.  And 529 plans aren’t just for others, you can start one for yourself!  We’ll dive into this special type of investment account below.  

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to future savings and investment, including saving for college.  Whether you are just getting started with your first savings account, or wanting to better understand 401(k) plans, our curated playlists will provide you with important information.

529 Plans:

529 plans are an investment platform that can be used to save and pay for education.  Some form of a 529 plan is offered in all 50 states, and the District of Columbia.  There are two different types of plans–one for prepaid tuition, and another for education savings.  Each type has differing criteria, so it is important to understand the plans when making a choice.   

Our 529 Plans module, located in the Investment in Your Future playlist, goes over key things like:  the benefits and risks associated with a 529 plans, how to open a 529 plan, how much to contribute to the plan, and even walks you through a college savings calculator.  Learn more about the types of 529 plans and whether this makes sense for you or your child’s education.    

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today: https://nafsa.everfi-next.net/welcome/nafsa-achieve

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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