There are so many different ways to go about financial planning for the future when it comes to our children. It can feel overwhelming and daunting when deciding which financial products would be best to help set our children up for a successful future.
I personally was having all of these feelings and kept putting off creating a more robust plan for my child. Because of this, my husband and I started a regular savings account when he was born. Even though there isn’t anything wrong with a savings account, the interest rate for his account was minimal which basically defeats the purpose of planning for the future.
Enter The Education Plan
I first heard of The Education Plan at one of the ABQ Mom events last year. I had it on my to-do list to follow up and create an account. But it never happened. Fast forward to this year where I met representatives from The Education Plan at another ABQ Mom event.
I stopped to talk to the representative and expressed how I wanted to establish an account that would help my child in the future. But I was so overwhelmed with all of the options out there.
She was so helpful! She calmed my nerves and went over all of the benefits of opening a 529 college savings plan. And then she even provided me with her cell phone number in case I ran into any issues setting up the account.
Setting Up a 529 College Savings Plan Through The Education Plan
The very next week I was ready to set up the account.
It took me a total of 10 minutes to create and it was so easy.
The first step in the process is to provide your information. (This is the person setting up the account.) You’ll need your full name, address, email, and phone number. Then you’ll create a password.
Next, you will be prompted to provide information regarding the beneficiary of the account. Please note that anyone can open an account for anyone and they do not need to be related to the beneficiary. Have the following available to make the process as smooth as possible!
- Beneficiary’s social security number
- Beneficiary’s full legal name
The beauty of starting this plan is that you can open the account with as little as $1! And you can contribute as much or as little as you want whenever you are able to.
Once the account has been activated, you are ready to set up the UGift option– this is probably one of my favorite features! A unique code is created for your beneficiary’s account which can be used for others to safely contribute to their account. They even include a print out you can include in any party invitation to encourage college donations instead of a gift.
This option could be really handy for grandparents and other relatives when it comes to holiday gifts. If your kids have quite enough stuff, why not ask for money for their future education?
Benefits of Opening a 529 College Savings Plan Through The Education Plan
- The money in a 529 plan can be used at accredited four-year universities, community colleges, professional schools, and trades schools across the US, including traditional and online institutions.
- Funds in a 529 plan grow tax-free, and withdrawals are also tax-free if used for qualified education expenses. (These include, tuition, room and board, books, fees and computer equipment).
- Data shows that with just $500 saved for higher education, kids are 3 times more likely to attend college or vocational school. And they are 4 times more likely to graduate than those without savings.
- The Education Plan is one of the lowest cost plans in the US.
- For New Mexico residents, there is a state income tax deduction for the full amount of any contributions to the plan for the year in which the contributions are made if the funds are used for qualified education expenses.
These are just some of the benefits. For more information please visit The Education Plan’s website.
After opening my son’s account, I felt so excited and accomplished. It’s only been a couple of months, and he’s already accrued more interest in those two months than he ever did having a traditional savings account!
I know this can be an intimidating process. So I hope that sharing my experience will encourage you to set up accounts for your littles.
