It’s never to early to save for your kids’ higher education

It’s true that September may be back-to-school for many families, but it’s also College Savings Month, which is celebrated to encourage families to save for higher education and learn about the benefits of doing, so with a 529 plan.

If a family hasn’t started saving for their loved one’s college or career training yet, that’s OK. This is a great time to make a plan, with the following six tips to help Wisconsin families get started on the right path: 1. Open an Edvest 529 account – Wisconsin’s Edvest 529 plan allows families to save for higher education, while taking advantage of compelling tax benefits. Wisconsin taxpayers are eligible for a state income tax deduction from their Edvest 529 account contributions, up to $3,860 annually, per beneficiary (married couples filing separately and divorced parents may each claim a maximum of $1,930).

Additionally, earnings are tax-free, when used for qualified expenses like tuition; books; certain room and board expenses; computers; and more.

Funds can be used at eligible universities, community colleges, technical schools, and professional schools nationwide and abroad, as well as apprenticeship programs registered and certified with the Secretary of Labor, under the National Apprenticeship.

2. Start Saving Now – It is never too early or late to start saving for a student’s future education expenses. While families are strongly encouraged to open a 529 account when a child is born, they can also consider doing so at other exciting milestones, like kindergarten registration or the start of middle school. Just remember, the earlier to start saving, the more time the money has to potentially grow and benefit from compound earnings.

3. Invite Gifting – College Savings Month can be celebrated by anyone. Grandparents, aunts and uncles, or friends can join in, by helping to save for a child’s education. Instead of the latest toy or game, invite people to contribute to a loved one’s Edvest 529 account. Gifting is perfect for birthdays, holidays, graduations and other special occasions.

4. Encourage Student Contributions – Is your student old enough to have a summer job or earn an allowance for household chores? Consider encouraging them to contribute to their 529 account. Even a small amount can create a shared sense of responsibility and a better understanding of the sacrifice being made on their behalf.

5. Consider Recurring Payroll Contributions – Starting early can be the first key to successful saving. But the second is to contribute to the goal consistently over time. A great way to do this, is by setting up payroll direct deposit to 529 accounts in any amount that fits the budget – even $25, per paycheck, can add up over time.

Furthermore, check with an employer to see if they offer a company match – some employers in the state are already doing so.

6. Enter the “What Can a 529 Do For You?” Sweepstakes – The College Savings Plans Network will run a nationwide sweepstakes through Sept. 30, where a family can enter to win one of nine, $529 account contributions to a 529 college savings plan of their choice.

For more information about Edvest 529 and to open an account, visit Edvest.com.

Edvest 529 is a tax-advantaged investment and the plan has no sales charges, enrollment fees or annual account maintenance fees. In fact, Edvest 529 is the fifth lowestcost 529 college savings plan in the nation.

Families should talk to a qualified professional about how tax provisions affect their circumstances.