October 2014

Monthly Archives

  • Who You Gonna Call? 529 Myth Busters

    by 2 Comments

    By Ashley Murdie
    Communications and Financial Literacy Director
    Kansas State Treasurer’s Office
    October 27, 2014

    Halloween is just around the corner, and while the fear of things that creep and crawl through the night may spook others, it’s 529 myths that truly have me worried. All too often, I’ve heard the same myths regarding 529 plans used as reasons by parents for not opening an account.

    It costs too much to start a 529 account.

    My child will have to attend an in-state school.

    I’ll lose the money if my child doesn’t go to college

    Knowing that these 529 myths and others still continue to deter families from using such a valuable resource is alarming, which is why I’ve made it a personal goal of mine to squash these pesky things. I’ve compiled a list of menacing myths below that I plan to debunk in hopes that parents no longer fear the use of 529 accounts in their efforts to save for their child’s education.

  • Lower Prices: Florida Prepaid Plan

    by Comments are off

    By Kevin Thompson
    Executive Director, Florida Prepaid College Board
    October 20, 2014

    Pumpkins

    Halloween is looming, and families across the country are investing in new costumes for their young superheroes, princesses and vampires. As scary as the tab for those Halloween costumes and trick-or-treat candy can be, it’s not nearly as jarring as the price tag might be on their college education.

  • Fall: A Season of Change

    by Comments are off

    By Jodi Golden
    Executive Director, Indiana Education Savings Authority<
    October 13, 2014

    Couple in the Fall

    As many families across the country are entering their children’s fall break from school, it’s a great time to reflect on the first few weeks of school. While you’re enjoying the leaf piles and making s’mores around the campfire, take time to ask your kids about areas in school they are enjoying, subjects they may need an extra boost in, and the goals they have set for themselves when they return.

  • Take the Scare Out of Paying For College: Saving vs. Borrowing Can Have a Fiendish Impact!

    by Comments are off

    By Lauren Shipley
    Public relations and marketing manager, College Savings Plans of Maryland
    October 6, 2014

    Pumpkins
    I hear one frightening theme as I travel in October: “I have been meaning to start a 529 plan for a while.”  I believe many families understand the need to save for college, but often misunderstand the true benefit of saving.

    It may sound bewitching, but each family has the power to cut their child’s future college costs in half. The power lies in saving now versus borrowing later.  To cover $25,000 in college costs, a family could put away $92 a month into a 529 plan for 15 years—a total investment of $17,000.

    1. A family choosing to borrow the $25,000 instead would have to repay roughly $35,000 (or approximately $300 a month over the next ten years)

    2. Their total debt would be double the amount spent by the family who saved. Ghoulish, right?!