Back-to-School Financial Planning: 529 Plans Explained
With the back-to-school season in full swing, families across Florida are busy getting back into a routine and looking forward to another year of growth and learning. It’s a time filled with excitement and anticipation, but also a moment to consider the future—specifically, how to make your child’s dreams of higher education a reality. One of the most effective tools at your disposal is 529 Plans.
Not only can parents with a 529 Plan save three times more than those without, but students with dedicated savings are four times as likely to graduate from college.
The Power of 529 Plans
A 529 Plan is a tax-advantaged savings plan designed to help families save for future education costs. These plans offer a unique way to make your money work harder by allowing your investments to grow tax-free, with withdrawals for qualified education expenses also being tax-free. Florida Prepaid offers two distinct 529 Plans tailored specifically for Floridians: the Florida 529 Savings Plan and the Florida 529 Prepaid Plan. Both plans are flexible and affordable, allowing you to choose the savings strategy that best suits your family’s needs and goals.
How a 529 Plan Fits into Your Financial Plan
529 Plans offer flexibility to meet your family’s needs. The Savings Plan covers a broad range of education expenses, including tuition, books, supplies, and certain room and board costs. It allows your savings to grow tax-free, with the flexibility to use the funds at accredited colleges, universities, trade or technical schools nationwide.
The Prepaid Plan, on the other hand, lets you lock in future tuition costs at today’s Plan prices, allowing you to prepay for your child’s future college tuition and fees. This plan protects you from rising education costs and inflation. While the plans were designed to work at any of Florida’s amazing public colleges and universities, the value can be applied to public and private schools nationwide.
When combined, these two plans create a well-rounded college savings strategy. The Prepaid Plan covers tuition and fees, while the Savings Plan handles additional educational expenses, helping you prepare for all aspects of your child’s college journey.
Easy to Start, Easy to Use
Getting started with a Florida 529 Plan is quick and simple—enrollment takes just 15 minutes, and it’s free to sign up. Once you’re enrolled, you can manage your plan online, adjust contributions and add plans as needed. When it’s time for your child to attend college, Florida Prepaid takes care of the details and can even pay the school directly, making the process seamless for you.
Why Now Is the Perfect Time to Start
The start of a new school year is the perfect time to focus on long-term financial goals. Ready to learn more about how much you can save with Florida Prepaid? Visit our website to explore your options and discover the perfect plan to secure your child’s future.
