“529 Day” aims to get parents to invest in children’s education

BOWLING GREEN, Ky. – In today’s age, attending either a private or public college or university can be extremely expensive.

“It’s getting unaffordable for the vast majority of the population,” said Casey Tinius, a financial planning specialist at Landmark Financial Advisors in Bowling Green. “Not everyone can start saving when their kids are born.”

According to The College Board, the average yearly tuition to attend a public, four-year school for in-state students is $9,410. For out-of-state students, that average costs rises to $23,890.

Rising costs like those make it more important than ever for parents to start saving for a child’s college fund.

That’s where a 529 account can help.

“A 529 account is a tax-free vehicle that allows you to save for college education for kids or really anyone in your family,” Tinius said. “The government has set those accounts up to where, if you put $10,000 in it and it grows to $30,000, you don’t pay any tax on that growth provided it’s used for qualified education expenses.”

May 29 is recognized as “529 Day” to help create greater awareness among parents that this type of savings account exists, because it’s never too early to start saving for their kid’s future education.

“The most important thing that the American people can do as families for their children, or our country as a nation, is to invest in the education of our children,” said United States Speaker of the House Nancy Pelosi last Friday during a visit to Delaware Community College.

A 529 account offers several benefits, but the main issue is that most parents, and people in general, aren’t aware of these plans.

“The earlier you can start saving in those types of accounts the better because the more time you have to grow, the more you take advantage of that tax-free growth,” added Tinius.

If you open an account in Kentucky, that doesn’t mean the child has to attend a school within the same state that the account exists in.

“It’s really just gotta be for higher education,” said Tinius.

Taking the necessary steps to plan for a child’s educational future isn’t just vital to their well-being, but to the growth of the country as well.

“Nothing brings more money back to the [United States Treasury] than investing in education,” said Pelosi.