5 Things To Know About Saving For College With a 529 Plan.
If you’re like the majority of high school students, you’re probably a little bit worried about finding money for college—especially if your parents haven’t already started a college savings fund for you. But you know what? It’s not too late.
Starting a 529 plan can be a great way to save for college—even if it’s only a couple of years away! Read on to find out what you need to know.
1. Anyone can contribute to your 529 plan.
Although you have to be 18 to start a 529 plan, once it’s open, anyone can help you save for college—parents, grandparents, aunts and uncles—even friends.
2. People can contribute a lot of money to your 529 plan.
With a 529 plan, you can save up to $12,000 a year for college. And, although this probably won’t matter unless you have a millionaire in the family, your 529 account can hold up to $300,000 in college savings!
3. You can link your 529 plan with a Upromise account, helping your college savings to grow even faster!
With Upromise, the things you buy every day can help you earn college money. Even better? Friends and family can all help you save, just by linking their purchases to your account!
4. The funds from your 529 plan can help you pay for college no matter what university you choose.
While all 529 plans are state run, the investments you make with them cross state lines. So your 529 plan from Illinois can be used to attend school in California, New York or even, in some cases, in other countries!
5. The college money in your 529 plan is transferable.
Right now, you’re planning to finish college and maybe even go on to graduate school. But life changes quickly and your plans could change. If that happens, and you don’t end up needing all the money in your 529? The funds can be used for another beneficiary—like a younger sibling.