Last week, Momtrends hosted an event with NY’s 529 College Savings Program. The venue took place literally right next to our apartment at the Institute Of Culinary Education (ICE). I just recently discovered that you are able to go there and take a cooking class, but I didn’t know the kids were able to take classes as well. So while the kids learned and thing or two in the kitchen, the adults got schooled on NY’s 529 College Savings Program.
Saving for college education for your children is something both Jason and I truly feel strong about. When the children were all born, like most parents do, we set up bank accounts in their name, for any money they received my grandparents or relatives for birthdays and holidays, would go in their account. We thought we were doing the right thing by setting up these savings accounts for our kiddies. Right?
Well after I spoke with advisors at Vanguard, I’ve realized we needed to shift our saving plan for the kids and get their little earnings into a 529 Plan! A 529 Plan is an investment account you can use for high education savings and are usually sponsored by your state. In my case, it’s New York! What makes these plans more powerful that just your average savings account is the tax savings. Your earnings grow federally tax-deferred, and qualified withdrawals, like using this money to pay for college tuition, books or supplies, or forming are tax-free.
I learned that anyone can open these accounts for your children or grandchildren with just $25! It’s truly a brilliant way to start saving for your children and in my opinion the greatest gift you can ever give them! And another great feature is that these accounts are up to 10,000 tax deductible annually for couples or 5,000 for single tax payers. I was literally texting Jason from the event telling him he needed to switch the kids accounts immediately!
And the best part, after we learned what we can do for our children and their future, our children did something super nice for us! They cooked us a beautiful lunch that we were all able to enjoy together! It was a wonderful afternoon and I cannot tell you how much I learned!