Wednesday, May 25, 2016

It's Never to Early! Learn How to Tackle College Costs with a NY 529 Direct College Savings Plan #AD

With just one more class to complete to have finished my Masters Degree in Elementary Education, looking back I realize the cost of higher education can certainly be costly.  Fortunately I stayed within the 5 boroughs of NYC,  received my bachelors in Forensic Psychology and worked on my Masters without the need for any student loans. The hubby and I want our boys to dream big and convey to them that we will support them in whatever field they chose to study as they continue to discover who they are and what interests them most. College isn't necessarily for everyone but should my boys plan to attend a university we'd like to be as financially prepared as possible. Last weekend a few eager parenting influencers headed aboard the Intrepid to learn all about the NY 529 Direct College Savings Plan with Momtrends.

Disclosure: This is a sponsored post and all opinions expressed are 100% my own 

If you've never heard of it you are most likely asking yourself what is exactly is a NY 529 Direct College Savings Plan?  Essentially it's an investment account that allows someone to save for higher education and is sponsored by a state. 

Let's say you set aside $1,200 a year—that's just $100 a month—in a tax-deferred account such as a 529 college savings plan,* for a total investment of $21,600 over 18 years. If this investment earns 5% a year, you'll have about $35,400 at the end of 18 years.

 Here where my key takeaways from my afternoon "Break to Educate"
  • There's so much involved in the cost of attending college that goes beyond tuition and the NY 529 Direct College Savings plan can be use on payments for books, supplies, equipment and some room and board fees.
  • Anyone can open up and contribute to the plan: parents, grandparents, relatives or friends - as long as they are an United States citizen or resident alien. Forget more stuffed animals, or video games for birthday presents, suggest they contribute to your child's education!
  • It doesn't need to be used just for college it can be used at  Postsecondary trade and vocational schools, 2- and 4-year colleges and Postgraduate programs.
  • Let's say the beneficiary {the future student} receives a scholarship or doesn't plan to go to college yet, or maybe never, no worries! You can easily changed the name of the beneficiary to maybe a younger sibling or maybe you the parent wants to go back and finish that degree or add another one to your belt. Go for it!
  • The beneficiary may have  NY state plan but can attend anywhere in the U.S or abroad.
  • To me one the best features to this plan is that it's tax deferred with qualified withdrawals being tax free, {for other uses not qualified you may incur a penalty tax}.

Watch the video & see how much fun everyone had and a few of the questions the parenting bloggers asked the experts

Whether your child wants to be an astronaut, lawyer or chef doesn't this all sound like a great way to start financially preparing for your child's educational success? Want to get started {you just need $25 to start} have some questions and concerns you'd like answered? Check out these 529 Basics and learn more on their FAQ page. 

Images Courtesy of 

1 comment:

  1. Saving up for your child college fund is nerve wracking. I love that there is a program available that helps you create a college fund. It's also awesome that you as the beneficiary can also use the fund to pay for your own college education as well!



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