Get a jump on college savings
Start saving early for college education. If your child or grandchild was born on or before January 1, 2020, and you enroll in CollegeInvest First Step program by December 31, you can receive dollar for dollar matching funds up to $500 for up to five years.
Babies and children grow quickly; it is never too soon to start preparing for their education. Money invested in a 529 educational savings plan grows tax-free to use on approved expenses like tuition, room and board, laptops, printers and more – helping to make the most of your hard-earned money. 529s can even be used for K-12 tuition.
Planning for your child’s education can feel overwhelming—but a 529 education saving plan offers a flexible way to help build a financial foundation for their educational future, according to Rachel Goodman, a local financial planner with Edward Jones and HOA2 resident.
“While most people know that 529 plans can help cover college and university tuition, these versatile accounts also can pay tuition for vocational and trade schools, making them suitable for students pursuing careers in skilled trades—from carpentry to the culinary arts,” shared Rachel.
CollegeInvest is Colorado’s official 529 program. According to their business development manager, Joseph Giulitto, more time allows money to grow. For instance, investing $100 per month for 15 years with a 6% return results in $30,308.92 – compared to not investing and just saving the same amount with no compound growth equals $18,000.”
In 2020, the Colorado legislature passed the First Step program. It is designed to provide a jump-start for college savings and encourage families to save for their children’s postsecondary education and is administered by CollegeInvest.
CollegeInvest 529 account owners can enroll in First Step for any child born on or after January 1, 2020 and will receive a free $118 deposit into the account. Plus, for those who enroll by December 31, 2025, CollegeInvest will match parent and legal guardian contributions up to $500 for the first five years, starting in 2025––resulting in an additional $2,500 in savings.
Those who take advantage of First Step’s matching program will have more money ready for education. If the same $100 per month is invested in the scenario listed above, that $30,308.92 can turn into more than $46K, if started at year one.
While CollegeInvest is not the only 529 savings program and there are many investment options, it is the only 529 plan to offer a state tax deduction for contributions by Colorado taxpayers.
Learn more about CollegeInvest 529 savings offerings as well as the First Step program at www.collegeinvest.org.
By Elean Gersack; photo courtesy of CollegeInvest
