We’re still early in the year, and for a number of people, taking a good look at your finances is high on the priority list. If you, or someone you love, has plans to go to college, then opening a 529 plan should rocket straight to the top of your New Year’s resolutions.

A 529 plan is a tax-advantaged college savings program designed to help families meet the ever-rising costs of higher education through planning and saving in a variety of investment options and programs.

Today’s average four-year college costs fall between $143,000 for a public university and $218,000 to attend a private institution.

When asked what they expect the four-year cost of college will be by the time their child heads to campus, parents of preschoolers fell short by more than $100,000. The actual costs: $209,000 for public, $320,000 for private, on average, according to the current rate of college tuition inflation¹.

And while a number of families plan to rely solely on scholarships and financial aid when the time comes, those strategies can be unpredictable.

In a 529 account, your money can grow free from federal taxes and be used to fund qualified higher education expenses at eligible educational institutions nationwide, not just in Virginia.

Virginia taxpayers enjoy the additional benefit of a state income tax deduction on contributions when they open an account with Virginia529. Virginia529 accounts can be set up for anyone, including yourself – and you can change the beneficiary to another family member without penalty at any time.

You can open a Virginia529 account with as little as $25 and save at your own pace.

 

If you’re ready to plan and save for the future, visit Virginia529.com to set up a college savings plan today! Follow Virginia529 on Facebook and Twitter as well to get updates on how to best save for higher education.

1 Source: TheStreet.com

The material in this article has been prepared by Virginia529 and is general information about Virginia529 current as of the date of this article [Feb. 5, 2018]. The information is given in summary form and does not purport to be complete. Virginia529 encourages prospective participants to seek the advice of a professional concerning any financial, tax or legal implications related to opening an account. Call 1-888-567-0540 or visit Virginia529.com to obtain all program materials. Read them carefully before investing. An investor should consider the investment objectives, risks, charges, and expenses of the programs before investing. For non-Virginia residents: before investing, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds and protections from creditors that are only available for investments in that state’s qualified tuition program. ©2018 Virginia College Savings Plan. All Rights Reserved.