Back in 2003, the U.S. Congress officially declared September College Savings Month, making a nationwide invitation to dream big for our children’s futures and take steps toward making those dreams a reality. It’s the perfect time to start planning for college costs so your child can chase their academic and life goals without being weighed down by overwhelming debt.

One of the smartest, most empowering steps you can take is opening and contributing to a 529 education savings account with The Education Plan®. It’s a tax-advantaged way to prepare for future education expenses — and it can make a real difference in reducing the need for student loans down the road.

How to Start Saving

Getting started is simple. You can start by creating a budget that puts aside a small amount each month for college savings. Treat it as a gift to your child’s future. Keep these funds separate from other savings by placing them in a dedicated 529 account. With The Education Plan, your contributions grow tax-free, and qualified withdrawals are tax-free too. Plus, if you’re a New Mexico resident, you can enjoy a 100% state income tax deduction on contributions — a rare benefit only four states currently offer!

You also don’t have to do it alone. Family and friends can join in by contributing through the Ugift program or even opening their own accounts for your child. Think about using special windfalls like tax refunds, work bonuses, or inheritances to give your account an extra boost. And remember, the earlier you start, the more time your money has to grow. Even if you begin when your child is in high school (or older), every dollar saved still reduces future debt. Encourage your child to add some of their birthday or graduation gift money to the account. They’ll thank you later!

How to Use Your Savings Wisely

When it’s time to withdraw funds, they can be used for a wide range of qualified education expenses, and that includes more than just tuition. Think room and board, textbooks, lab gear, online class materials, some study abroad programs, computers, and even necessary tech accessories like software, speakers, or a mouse,  as long as they’re used primarily while your student is enrolled.

Some costs aren’t covered, like transportation, application fees, extracurricular activities, or most health insurance. And to make tax-free withdrawals, your student must be enrolled at least part-time. Non-qualified withdrawals come with taxes and a 10% penalty, so plan ahead.

Why It Matters

This September, commit to setting aside as much as you can toward this important milestone. Even small, consistent contributions can add up to something powerful over time. Give your loved ones the freedom to focus on their education, not their debt.