My grown-up says that there’s a lot to love about 529 plans. Mine is as old as I am! What do you love about 529s?
Gemma (age 2)
I love that your grown-ups love 529 as much as I do. Indeed, there is a lot to love about saving and planning for the future!
A 529 plan is a tax-advantaged way to save for future education. That means you set aside money now in a special account that grows tax-free (ask your grown-up what that means), and earnings are tax-free as long as you use your account for education expenses like tuition, books, and even computers! This helps your savings turn into even more savings. And if you are contributing in a systematic way (that means saving on a regular basis), your account can really grow!
Maybe one day, your fascination with pets will turn into a career in veterinary medicine, or maybe you want to become something completely different when you grow up. You can do it all with help from a 529 plan.
Gemma, you’re off to a great start and I admire that! Whatever you decide to do, the most important thing is to keep saving, keep dreaming big and keep working toward your education goals!
Oh – and make sure your grown-ups check to make sure some of the new education expenses like apprenticeship programs are tax-advantaged in your state too!
Happy Valentines Day from Alaska,
About the author:
Dash is an important member of the team at the Education Trust of Alaska as the top dog in savings outreach. Dash is often seen representing the Alaska 529 at a variety of community events and activities. He strives to represent the Plan with the same enthusiasm that he has for dog mushing.