Today, the College Savings Plans Network published its 2014 Year-End 529 Report and we’re happy with the results: growth!
Highlights from the report show:
Total Investment: Total investment by American families in 529 plans grew by $20.8 billion reaching a record level of $247.9 billion.
Number of Accounts: The total number of 529 accounts increased 4.1% over the past 12 months, going from 11.6 million in December 2013 to 12.1 million as of December 2014.
Total Assets: Including growth from contributions and investment returns, total assets in 529 plans grew by 9.1% in 2014.
Average Account Size: The average 529 account size continues to grow, reaching an all-time high of $20,474.
529 plans were designed as a way to encourage people to save for college for their children or grandchildren (or any other beneficiary), and statistics show that students with any amount saved for higher education are six to seven times more likely to attend a four-year institution than those without any savings.
Despite the increasing costs of higher education, there are compelling reasons for children to attend college. According to a report by the College Board entitled “Education Pays 2013,” college graduates can expect to earn on average 65 percent more over 40 years than those with only a high school diploma. In 2012, among adults between the ages of 25 and 64, 67% of high school graduates, 71% of those with some college but no degree, 77% of those with associate degrees, and 82% of those with four-year college degrees were employed. By offering tools and resources, CSPN will continue its mission to educate American families that with the right financial planning, any college dream can become a reality.