The journey of life starts when a child is born. Parents welcome their bundles of love into the world with open arms and love in their hearts. First steps of parenting usually concentrate on providing daily emotional and materials needs for the child. As parents, we all can relate to those first hectic years. One thing that is generally put on a list way down the road is the savings path that provides for a child’s college education. They may be young now, but before you know it that little bundle of joy will be ready for college. As parents, the question is: “Will you be ready to pay for their college education?”
In Indiana, we have something all parents and grandparents should be aware of called “CollegeChoice 529 Savings Plans.” They are unique savings plans that can provide your child with a greater opportunity for achieving success. Advice to parents and grandparents: The sooner you get started saving a few dollars each month, the more time your money will have to potentially grow. And, as an incentive, you may be eligible to receive tax benefits to help your money go farther.
What is CollegeChoice 529?
“Indiana has one of the best tax advantages in the country with our 20% state income tax credit up to $1,000 maximum credit for contributions in the CollegeChoice Plans. And, yes, I said tax credit, not deduction. I encourage all Hoosiers to begin planning early and start saving now. Although, it’s never too late to start saving as every dollar counts,” states Mourdock.
Grandparents Can Get in Gear with a Lesson in Saving – Little by Little
Grandparents can also get involved with their grandchildren by giving them a gift of saving for them through their own CollegeChoice Plan. Birthdays, holidays and special family occasions add up year -after-year. So why not help out with a gift that will not be forgotten in a matter of time? The icing on the cake with a designated CollegeChoice529 plan is that it will not only send a powerful message to the child that Grandma and Grandpa have faith in their future dreams, but they too would be eligible for the state income tax credit based upon their contribution. The nature of this plan is that you can take each grandchild along on your savings trip starting as early as you are prepared to do so. College Choice 529 makes it easy to get started with multiple investment options and enrollment can be done online as well. There is also the ability to earn college savings on everyday purchases when you shop online, dine out and much more. It’s a choice that keeps on giving to your grandchild long after the candles on the cake are blown out.
Parents’ who start talking to their child while they are young and, then take the next step by getting them involved with the process of saving, introduces the child to solid lifetime habits that will remain with them forever. Studies show that youths who have school saving plans are almost 4 times more likely to attend a 4-year-college than youths with no savings plan in place. It’s a habit well worth establishing at an early age and it doesn’t have to wreck your budget.
“We have 3 great programs for Hoosiers to start their college savings in. The CollegeChoice Direct and CollegeChoice Advisor 529 Plans offer a wide range of investment opportunities with low fees and a simple user-friendly website. Both plans offer individual investment options and also an Age-Based program that automatically invests your assets based on the age of your beneficiary. Last year we also began to offer the CollegeChoice CD Plan, which gives participants an opportunity to save through a variety of FDIC insured certificate of deposit products. It is important for Hoosiers to begin saving as early as possible. As college expenses rise yearly, every dollar counts as each dollar you save is one less dollar your loved one will walk off campus in debt with at graduation,” states Jodi Golden, executive director for the Indiana Education Savings Authority, which acts as the administrator for the CollegeChoice 529 plan.
Being a parent presents many responsibilities. Not every child will go on to college for various reasons, but for those children that want to take this journey, investing in CollegeChoice 529 makes perfect sense.
For more information on CollegeChoice 529 Savings Direct Plan call: 1-866-485-9415 or go to www.collegechoiceplan.com. You can also email Jodi Golden, executive director of the Indiana Education Savings Authority at firstname.lastname@example.org.