Start saving for your child's future today with an NC 529 Account
A tax-advantaged method of saving and investing for education, an NC 529 Plan can be used to help finance your child's education.
Posted — UpdatedSaving money is a slow and steady process, and it shouldn’t require massive sacrifices if you start early. This is why the NC 529 education savings program was developed: to help people save the money they need for education expenses.
A tax-advantaged method of saving and investing for education, funds from an NC 529 Account can be used for educational purposes.
Takeila Hall, an NC 529 Regional Representative, has 23 years of experience working with people of all ages and income levels to save money for college.
“We have the opportunity to work with many individuals to educate them about the importance of preparing for educational expenses,” said Hall. “Anyone 18 or older can establish an account. Sometimes it’s adults who want to continue their own education; sometimes it’s people who want to start saving for their children.”
A 529 account allows money to grow tax-free; as long as it’s withdrawn to pay for qualified education expenses. According to College Foundation of North Carolina, these expenses include the following
College tuition, books, fees, room and board, and technology (such as a computer)
- Trade school programs
- Apprenticeship programs
- Equipment for those with special needs
- Student loan payments
The funds can be used toward public or private K–12 schools as well.
“When people think about saving, it is important to have a particular goal in mind,” said Hall. “When someone opens a 529 account, they’re making the decision to save money for educational purposes.”
People who plan for future expenses may struggle to know how much to save in a 529 account — overall and out of each paycheck.
“Most people are hoping to get scholarships and grants, and this helps bridge the gap,” said Hall. “It reduces the amount of future loan indebtedness.”
“We have a savings calculator on our website,” said Hall. “Our calculator allows you to determine how much you need to save to reach your savings goals.”
Once you know how much to save, it may still be difficult to find money in your budget to set aside. But Hall has a few ideas for redirecting money from typical spending into saving for college.
“I tell people to think about how often they go out for lunch,” she said. “It is easy to spend at least $10 or more each time. Making small sacrifices can mean big savings. Most people also enjoy going out to eat during the weekend. One way to save a few extra dollars each month is to eat at home. My family and I even make it fun by making our favorite gourmet meals. We cannot wait for the next creation.”
Additionally, if you get a tax refund, use some or all of it to add to your 529 account, said Hall.
“Instead of going to the movies twice a month, you can say we’ll watch movies from home today,” she said. “If you get a raise, bonus, or merit increase at your job, then you’re not taking from money you had; you can use the additional funds as a way to put money aside.”
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