Thought Leadership Thursday
A Great Time to Promote a 529 Plan
Thought Leadership Thursday Article
Greetings NAST Colleagues,
May 29 is National 529 Day, a day set aside to promote the value of state-sponsored 529 college savings plans and the perfect time to promote the many benefits of a 529 plan. While 529 plans across the country will be celebrating National 529 Day this Sunday, I believe every day promoting a 529 plan merits celebration!
529 savings plans continue to be a dominant vehicle for parents and grandparents to save for a loved one’s college education. Nationally, there are over 15.7 million accounts, and the total investment by American families in 529 plans has reached a record level of $480.3 billion, a year-over-year increase of more than 11 percent. This significant growth in 529 plans reflects account owners’ confidence in saving for higher education. Families are demonstrating their optimism by opening new college savings accounts and continuing to contribute to their existing accounts. For more details on the College Savings Plans Network (CSPN) research, a recent compilation of national data can be found here.
CSPN is committed to helping families save for college. While the cost of a post-secondary education can seem overwhelming for many families and students, higher education is one of the best lifetime investments a family can make. As we celebrate National 529 Day, we are focused on drawing attention to the value of college savings plans and to encourage new savers to enroll.
Why we need you for 529 Day. As state treasurers, state finance officials and corporate affiliates, you are well positioned to join CSPN in raising awareness about the importance of saving for college. Education is a top priority, and 529 savings plans are important to help students and families prepare for the future. Your communities all benefit when you talk about the significance of starting early to save for higher education. Families often think they can’t save for college. You can inspire them to believe that they can!
All children deserve the brightest futures possible. Saving early for higher education is one way in which parents, grandparents, aunts, uncles, and family friends can help young people reach their potential and live their dreams. Saving for college is one of the most important steps we can take for the students in our lives, whether they are starting kindergarten, attending middle school or high school, heading off to college, or planning to go back to college after time in the workforce.
No student should have to pass up dreams of college, vocational school, technical school, or graduate school because they can’t afford to go. A well-educated workforce helps our country meet the challenging demands of the future. We look to the youth of America to provide leadership and bright ideas to move our communities, our states, and our country forward. A 529 savings plan can help them achieve the education requirements they need to accomplish their chosen career path.
Every state celebrates 529 Day in its own unique way, but we all share the same goals. Each year on National 529 Day CSPN is especially excited to spread awareness about the benefits of 529 plans and why they are the best college savings option to financially prepare children for higher education. We hope you join us in our commitment to helping families start the process of saving for college, as well as encouraging existing 529 account owners to continue saving as much as they can. It all adds up and can truly make the difference in a family's ability to send a loved one to college. And that is most definitely worth celebrating on 529 Day and every day!
"Making an Impact – Empowering Families"
Rachel Biar, Assistant State Treasurer, Nebraska