SANTA FE, NM - National Savings Day–a day dedicated to celebrating financial wellness and the importance of saving money–is October 12, 2022. A tax-advantaged college savings plan is a great option for anyone to save for future education expenses The Education Plan®, New Mexico’s 529 education savings plan has created a wealth of online planning resources to assist families with saving for higher education.
According to the CSF 2022 State of College Savings Survey, 65% of all parents were saving for their child’s higher education; 46% of all parents had saved at least $5,000 per child and three-quarters of those parents with 529 accounts are saving through recurring – annual, quarterly or monthly – contributions. One-in-five parents prioritize 529s as their primary savings vehicle. According to the College Savings Plans Network (CSPN), there are nearly 16 million 529 account holders across the nation.
“Saving money is one of the most important steps toward financial wellness,” said Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the state agency that administers The Education Plan. “With plans you can customize, add to as you’re able, and build over time, a 529 college savings plan can accommodate any lifestyle and any budget. On National Savings Day, we encourage current and future savers to look at their finances and determine where they can save money to put toward future education plans for themselves or a loved one.”
Saving for secondary education has become a pressing priority, as college tuition has increased by 130% after adjusting for inflation since 1990, according to the Education Data Initiative. Since the pandemic, college tuition and fees have spiked by 4.7% year over year as reported by The Hechinger Report.
“Whether you are planning for future education for your children or grandchildren, or you are planning to further your own education, every dollar saved can add up over time to make a huge impact in the future” added Cordova.
A 529 College Savings Plan can be opened with as little as one dollar and can be used for qualified expenses at colleges, universities, vocational or trade schools nationwide. To learn more about The Education Plan® or to begin saving today, visit TheEducationPlan.com.