Santa Fe, NM, Nov. 14, 2024 (GLOBE NEWSWIRE) -- American Education Week is November 18–22, first celebrated over 100 years ago with the aim to create awareness about the need for education. As we reflect upon and celebrate the role of education and schooling, it’s an ideal time to open or contribute to a 529 education savings plan, an investment in families’ education. 529 education savings plans are tax-advantaged savings plans intended to help make education more affordable or attainable for families. As the costs of education continue to grow, a 529 education savings plan can be a valuable tool.
Higher education has consistently been shown to boost earning potential. According to the U.S. Bureau of Labor Statistics, people who have obtained at least a bachelor’s degree typically earn over 25% more per week than those with only a high school diploma and are employed at a rate that’s nearly double that of their less educated counterparts.
The impact of postsecondary education goes far beyond earnings, as well. An article by Inside Higher Ed, citing a report by the Lumina Foundation and Gallup, notes individuals who attend a higher education institution reported that they are in good health and civically engaged at rates that surpass people with no postsecondary education. Similarly, a Forbes article looks at a poll by ResumeNow where 85% and 83% of respondents with postsecondary degrees expressed more self-confidence and more power to follow their career aspirations, respectively.
“Pursuing higher education can lead to a path of personal and financial fulfillment,” said Natalie Cordova, Executive Director of the New Mexico Education Trust Board, the organization that administers The Education Plan®. “Investing in a 529 plan is a great way to help your family achieve their higher education goals in a way that’s attainable and flexible.”
Funds in a tax-advantaged 529 education savings plan can be used to pay for a wide variety of qualified expenses. Qualified expenses include tuition, room and board, books, supplies, and more at eligible institutions nationwide. The funds in a 529 plan aren’t limited to just traditional four-year colleges. Families can also use the savings to pay for K–12 tuition (up to $10,000 per year), vocational training and even registered apprenticeships. 529 plan withdrawals for qualified expenses are not subject to federal income tax and account earnings are tax free.
Friends and relatives can also make gift contributions to a loved one’s 529 savings plan through a one-time gift or a recurring contribution.
“American Education Week is the perfect time to learn more about the benefits of a 529 education savings plan,” said Cordova. “The gift of education can be made at any time during the year, including in celebration of American Education Week. I encourage everyone to consider making a gift to a 529 plan.”
For more information or to open an account, visit www.TheEducationPlan.com.
