Quinn is fan of piggy banks. He has two different ones up on his dresser right now and can’t wait to break out the reindeer piggy bank in a few weeks. So when I was sent information to share with you about the Arizona 529 College Savings Plan that included DIY piggy banks, he was stoked!
Speaking of saving money, do you have a 529 College Savings Plan set up for your kids? Don’t know what I am talking about?
Here is more information from the Arizona Family College Savings Program website.
The Arizona Family College Savings Program is Arizona’s version of the savings plans permitted under IRS code section 529. These plans are designed to encourage individuals to save for future education expenses.
I have NOT set up a Arizona 529 College Savings Plan yet for my boys. There are many reasons why I need to get my butt into gear, check out a few of them below.
10 Reasons you should open a 529 College Savings Plan
- Two-thirds of 4-year college graduates who borrow money for college, leave with an average of $25,000 in loans. And since that is about how much I have in student loans, I know how much that sucks.
- Putting aside just $50 a month could be worth $26,000 in 20 years. Sweet!
- The Arizona 529 Plan allows you to contribute as little as $15 a month. I like this because even when money is tight, most people can sacrifice a little and still put money away for college.
- 529 plans grow tax free and the funds are used tax free when paying for eligible college expenses such as tuition, room and board, frees, books, supplies and equipment required for enrollment.
- There is an Arizona tax incentive. Up $1500/joint filers and $750/individual or head of household filers. Find more Arizona 529 tax incentive information HERE!
- Anyone can contribute to the account once it’s set up. Perfect for grandparents who would rather contribute to their grandkids future rather than contribute to their pile of toys!
- It’s easy to change beneficiaries if you child earns scholarship money or decides not to attend college. The new beneficiary only needs to be a family member of the former beneficiary! A sibling or even a parent could easily use the funds!
- Plus the 529 savings plan funds can be used at any U.S. Department of Education accredited college, university and vocational school. It can also be used at some foreign schools!
- There are a variety of investment options in the Arizona 529 plan including, index funds, age-based asset allocation, mutual fund portfolios, and static mutual fund portfolios.
- The Arizona 529 Plan also offers an FDIC insured CD option if the stock market makes you nervous.
Do you save for your kids college education? I would love to hear about it!
Disclosure: This post was sponsored by the #AZ529 College Savings Month Blog Tour. and #MomSelect All information provided by AZ Family College Savings Program. As always, all opinions are my own!