One of the biggest things you can do to set your child/children up for success is to start a 529 plan for them.

So what is a 529 plan? I’m so glad you asked!
A 529 plan is a tax-advantaged college savings fund that you can set up for your child(ren). It can be used for a variety of education expenses like tuition, room and board, books, student loan repayments, and even some apprenticeship programs. You can also use up to $10,000 a year for K-12 tuition. This plan money can be used nationwide (USA- you’ll have to explore options in your country). However, it’s a good idea to talk to a financial advisor. I know our state also has 529 plans, but then you’d only be able to use it in this state, so you need to pay attention when opening the account. Also pay attention to penalties if you pull money for non-qualified reasons.

Earnings from these account are often tax free, although it’s important to read the specifics when opening a plan. Also take note on what happens if your child decides not to go to college. Most plans allow you to change the beneficiary (like to another child) or allow you to roll over a certain amount of money into a Roth IRA for your child’s future. The plans also tend to have a high contribution limit, so there are a lot of benefits to these plans!

The world is an unpredictable place, especially in the days we’re living. If you want to help set your child up for success, this is a great place to start because we all know how expensive college is (and I can only imagine what it will be like in 15-18 years). Even if you can only save a little at a time, that can make a big difference for your child’s future.

What other ways can you think of to help set your family up for success? Let me know below!