The cost of college continues to climb, and unless something changes in how we treat higher education in this country, it’s not likely to come back down anytime soon. So for those of us who would like to help finance our children’s education, 529 Savings Plans provide for a smart investment.
529 Plans, sometimes called college education plans, are simply an investment account that offers tax breaks when the money is used for qualified education expenses, such as tuition, fees, books and supplies, and room and board. Money that you put into a 529 plan will grow tax-free, and as long as it is spent on education, there are no taxes to withdraw the money when the time comes.
If you are ready to start saving for college, you should read up on 529 Savings Plans.