Building Your Child’s Future Through Future Scholar Program

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Greenville Mom Collective is proud to partner with Future Scholar for the following post!

No Question About It – Now is the Time to Save for Your Child’s Future Education  

While I’m not an expert on financial management, I do consider myself quite an expert on saving money and helping my family to make decisions that will benefit us long term.

Whether you’re just starting your family or your kids are already in school, I know it’s never too early to begin saving for their future. 

Never too early to save for your child's future, children in class

If you’ve never used one, you may be asking, “What exactly is a 529 savings plan?” 

A 529 plan is an investment account used for college expenses. These plans are similar to a 401k or IRA plan for retirement. The money you place into this savings account is deductible on your SC income tax return, and any interest you earn is tax-free if the money is used for qualified educational expenses. Each state offers a 529 plan, but they typically vary somewhat in investment options and how the plans are managed. 

As college tuition continues to rise each year, why not help yourself and your children by starting to save while they are young? The very last thing you’ll want to be worrying about once the college years are here is how to pay for your children’s education. Here’s a little more information to help you on your college savings journey.  

Next question?  “What are the benefits of starting a 529 plan?” 

Here in South Carolina, our 529 plan is offered by the State Treasurer’s Office. The Future Scholar 529 College Savings Plan is available to all SC residents and has been recognized nationwide for its low fees and numerous tax advantages. Future Scholar 529 plans are flexible and easy to start. There are several perks that will help you with saving through the years. 

  1. There are many tax advantages. The contributions to a Future Scholar 529 savings plan are deductible on your South Carolina state income taxes. Also, when it’s time for college, any interest earned is tax free from both state and federal taxes, as long as it’s used for qualified expenses (tuition/room and board/supplies/etc.) 
  2. After your Future Scholar account is open, you can invite anyone to contribute to the account. Friends and family members are able to contribute to the savings plan and receive the same tax benefits that you as a parent/account holder receive for contributions. 
  3. When family or friends contribute to the account, they have the option to do so online or with a gift card, making the process very convenient and easy! 
  4. Future Scholar 529 accounts not only cover the college tuition costs. Room and board, books, computers, and supplies are also covered! 
  5. Your account savings are transferable to another eligible beneficiary, so you won’t have to worry if one child changes educational plans. 
  6. Future Scholar can be used at any accredited college or university in the country. It can also be used at many international universities as well. These savings plans can be used for technical schools, 4-year programs, apprenticeships, and even graduate school. 

Want to know when to start saving? Early planning is key!

Like most savings plans, starting early is key for investing and growing your 529 account. The most important thing you can do for your child’s college fund is to start! Each dollar that you can put away for college helps to grow your child’s savings account and every contribution helps! 

College tuition prices have risen dramatically over the past ten years, and those costs are continuing to rise. Moms today find themselves having to save much more than parents of past generations. Don’t allow yourself to be intimidated by the ever-rising college tuition costs. Every dollar that you save for your child prior to college is one less dollar that they might have to borrow in the form of student loans. Whether you’re saving $1000 a month or putting in $50 here and there, when you have extra money in your budget, add to your child’s investment.

college savings through 529 plan

May 29th is National 529 – and PalmettoBaby – Day!

South Carolina’s Future Scholar 529 Plan works to promote the importance of saving for college each and every day, but especially this month, as May 29th is National 529 Day. Each year, Future Scholar and State Treasurer Curtis Loftis, who administers the plan, celebrate 529 Day with the PalmettoBaby Grant Program. All PalmettoBabies born on 5/29/2021 are eligible to receive a privately-funded $529 grant when their parents open a new Future Scholar account. The deadline to apply for the 2021 PalmettoBaby Grant Program is 8/31/2021. 

Last question! What are you waiting for? 

Saving for college through a 529 plan makes a huge difference when helping to put your children through college. Earlier is always better to start saving, and South Carolina has such an awesome program in Future Scholar. Are you ready to start saving? The process to open an account is super easy. You can enroll online in less than an hour at FutureScholar.com/enroll.  Help your child and get started today!

 

 

 

 

Let us know if you’ve started saving for your child’s education or if you will be starting soon! With so many resources and benefits available, help your child and get started today!

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