SANTA FE, NM – As the nation faces a severe skilled labor shortage, the demand is greater than ever for workers with a trade school education according to the U.S. Bureau of Labor Statistics. If you or a loved one wants to pursue a career in the trades, the best time to start saving to pay for that education is today. A 529 education savings plan is a great vehicle for tax-free savings that can be used to pay for trade or vocational schools.
“The flexibility offered by a 529 education savings plan opens up an entire world of opportunities for those looking to enter a trade industry,” said Natalie Cordova, Executive Director of Education Trust Board of New Mexico, the organization that administers The Education Plan®, New Mexico’s 529 education savings plan. “Opening a 529 account is a great way to support the student in your life and to set them up for a successful future—whichever path they choose. Additionally, for people already in skilled trades who are looking to invest in further education or certifications, The Education Plan can provide a flexible way to save for those programs.”
There are many industries requiring vocational or trade school education that are seeking skilled workers and offering long-term career growth. According to the U.S. Bureau of Labor Statistics, the demand for construction laborers and electricians is projected to grow by 7% between 2022 and 2030 and Heating Ventilation Air Conditioning and Refrigeration (HVACR) technicians are set to have a 5% increase in demand.
A 529 savings plan can be used to pay for qualified education expenses at universities, community colleges, trade schools, or vocational schools across the United States. A 529 account with The Education Plan allows flexibility with contributions (no required minimum amount) and the account holder can make contributions whenever they choose. Contributions add up, even small amounts, and the earlier an account is opened in a child’s life, the more time the account has the potential to grow through compounding. Opening a 529 account at any time can provide a positive difference, as students with even $500 saved for college are three times as likely to go to college and four times as likely to graduate.
According to the College Savings Plans Network (CSPN), there are nearly 16 billion 529 account holders across the nation. As of 2022, $457.7 billion dollars have been invested in those accounts, according to CSPN.
To learn more about The Education Plan® or to begin saving today, visit TheEducationPlan.com.