Thursday, October 25, 2012

Are You Saving for College for your Kids? #AZ529 #MomSelect

     When most parents think about their children's future they worry about money for college.  Everyone wants the best for their children and a good education is a part of that.  But setting up a college fund or savings is often overwhelming and confusing.  That causes many parents to give up or put it off.  Then before you know it your child is grown to the college age and the money is not there.  This is where so many college kids get into debt with student loans.  Wouldn't it be great to have a fund ready so that your child did not have to worry about paying back thousands of dollars in student loans?

     As a child I just had this belief that after high school you go to college or a trade school of some kind.  High school was never the end.  Now my family was not full of college graduates or anything like that.  In fact very few family members attended college or trade school.  But still my mom pretty much instilled that it was expected that my brother and I would go on to something more.  It was never a question or though to no go further in school.  After high school my brother attended a trade school and I went to college.  My mom was diligent in teaching us to go further in our education, but we did not have a college fund for either of us.  My brother was lucky that he received a scholarship to his trade school.  I received a scholarship and a pell grant to help me with my college expenses.  I did end up using some credit cards to pay for my last year of my bachelors degree.

Jayden saving for college.

     I wanted to be better prepared when I started having children so I set up a 529 plan for Jayden a couple years ago.  A 529 plan is a tax-deferred savings account that parents, grandparents or anyone can save for a child's education.  The state of Arizona offers one of the most diversified 529 plans in the country.  Some of the benefits of Arizona College Savings Program #AZ529 are:

*  tax exempt from federal income tax
*  exempt from Arizona income tax for Arizona taxpayers
*  multiple providers that include choices of CD's, mutual fund options, and age-based portfolios
*  accounts that grow on a tax deferred basis
*  assets not considered when determining Arizona financial aid awards
*  savings that can be used at most accredited universities, colleges, private colleges and training schools in the United States, as well as eligible foreign institutions
*  anyone can contribute
*  save as little as $15 a month
*  option to change account beneficiaries annually

     One of the big benefits of the  #AZ529 is the tax incentives.  Another benefit that I like is that there is an option to change the account beneficiary annually.  This means if Jayden gets a full ride scholarship (hopeful thinking) then I can easily change the fund I have started to Evan's name.  Or if for any reason Jayden does not use all the money it can be transferred to Evan.  And since my boys are 4 years apart then when Jayden does go to college I have 4 years to figure out if there is enough money left in the account for Evan or if I need to contribute more.  I am happy to know that I have chosen a great savings plan for my children to get the education they deserve.

     Oh and just a little for you non-Arizona people.. you can open an AZ529 plan even if you don't live in the state.

This was a sponsored post for #AZ529 and #MomSelect.  All thoughts and opinions are my own and not influenced.

2 comments:

  1. I definitely need to get something set up to start saving for the girls.... three college educations to help pay for.... eeeek.

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  2. College shows up at your front door before you're ready for it. I didn't do that with my girls, but definitely need to with my boys since I'm a single mom now! Good idea to look towards the future!

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