By Rachel Biar, Chair of the College Savings Plans Network and the Assistant State Treasurer for the Nebraska 529 College Savings Program
October 10, 2023
2023 has seen a resurgence in the financial markets, which has proven beneficial for 529 plans across the country. We are excited to announce that as of June 2023, over $450.5 billion was invested in more than 16.25 million 529 accounts across the country. That is an 8% growth in assets in just six months from December 2022.
While, as an industry, we are excited to see this growth, it is important to note that any time is a good time to start saving for education. With the benefit of compound interest over multiple years of savings—the sooner funds can get placed in a 529, the better. It is also worth mentioning that the earlier someone starts investing in an account, the sooner they may get to take advantage of the federal tax benefits offered by many individual states. To learn about individual state 529 plans, check out our Search and Comparison Tool.
If you missed it, we are very excited to have been recently named a 2023 Parenting Award winner by Good Housekeeping.
“Parents of college-age kids attested to the fact that, thanks to compound interest, a 529 plan can grow impressively fast, especially if you contribute automatically each month. Add in gift money from holidays or special events and watch it increase.”
We could not agree any more and thank Good Housekeeping for recognizing 529 plans as an essential part of parenting!
About the author:
Rachel Biar is Chair of the College Savings Plans Network and the Assistant State Treasurer for the Nebraska 529 College Savings Program. The Nebraska Educational Savings Trust (NEST) provides four plans: NEST Direct College Savings Plan, the NEST Advisor College Savings Plan, Bloomwell 529 Education Savings Plan, and the State Farm 529 Savings Plan. The Nebraska State Treasurer serves as the Program Trustee. Union Bank & Trust serves as the Program Manager, and all investments are approved by the Nebraska Investment Council. Families nationwide are saving for college using the NEST 529 plans, which have $6.5 billion in assets and more than 297,000 accounts. Visit NEST529.com and treasurer.nebraska.gov for more information.