With the stock market hurting everyone’s 529 plan, it’s nice to be able to do something to make your 529 go up.
FreshmanFund.com is offering up to 100 people a $5 gift certificate to FreshmanFund. You can transfer this to your 529 plan.
For details on how to get your certificate, visit:
Saving for college and keeping up with contributions to 529 plans can be difficult, especially when times are tough. Here are five ways to keep up with your 529 plan and save more money for college.
1. Set up automatic payments. Most 529 plans encourage you to set up automatic deposit with your plan. For example, Utah will automatically debit your checking account each month on a date you set for a regular amount. Many states let you contribute as little as $15 per month.
2. Ask friends for help. Rather than having friends and relatives give gifts to your kid for his or her birthday, ask them to contribute to your kid’s 529 plan. One company makes that easier — FreshmanFund.com. Simply set up an account, let friends contribute to it, and the money is automatically sent to your 529 account.
3. Get your kid involved. By the time they enter middle school, most kids are starting to think about college. This is a good time to talk to them about the expenses of college and how you are prepared to help them. After discussing how much you are going to contribute and any gap that exists, challenge them to help make up the difference. You can even offer to “match” what they contribute to the account.
4. Take advantage of tax breaks. 529 plans offer great tax breaks. Not only do you avoid federal income taxes on your investment earnings, but many states offer deductions when you make your contribution. Investment earnings held outside 529 plans get hit by Uncle Sam before you use it to pay for college.
5. Start yesterday. If you haven’t set up a 529 plan yet, you need to start now. The earlier you start the more the “magic of compounding” will help you.