This article is brought to you by NEST 529, Nebraska’s 529 College Savings Plans. We are happy participants in the program ourselves!
Start early: saving for college has advantages today AND tomorrow.
With everything on your plate as a parent, it’s easy to focus on the things happening now without giving much thought to the things happening down the road: like saving for college. We all want to do everything we can to ensure the best possible future for our children and saving for college is one big way to help make their future great.
It’s no secret that a college education plays an important role in a child’s future success, but the vast majority of parents don’t have a plan to save for higher education. One simple way to start the process is by investing in a 529 college savings account when your child is young.
The sooner you start saving, the more time your money has to grow thanks to the power of compounding interest. Let’s say you put away $100 a month for college costs starting when your child is born. With a 6% annual rate of return, the difference between starting when they’re a newborn and starting when they’re 5-years-old is $15,277.1
Nebraska’s nationally-recognized 529 college savings plan—NEST 529—has several features that make it easy for parents to begin saving. Earnings grow tax-free and no taxes are taken out when money needs to be withdrawn to pay for college or other related expenses. Each year, you can also deduct contributions to a NEST account from your Nebraska state income taxes.
Sign up in less than 10 minutes and choose from several investment options tailored to your needs. NEST also offers the flexibility to easily manage your account online and set up automatic contributions from your bank account. You can even enjoy the perk of earning extra savings from your everyday purchases.
Drawings and Scholarships
Throughout the year, NEST offers several drawings and scholarships for opportunities to add more money to your 529 account. Starting April 22, NEST is offering more than $10,000 in scholarships for babies 0-18 months. To enter, visit NEST529Direct.com/EveryAdvantage for more information. Drawings will be held every two weeks. 2
Click here to learn more about NEST and 529 college savings plans.
1 Calculation assumes an annual investment return of 6% and monthly contribution of $100 per month on the first day of each month. This hypothetical is for illustrative purposes only. It does not reflect an actual investment in any particular college savings plan or in the NEST Direct Plan or any taxes payable upon withdrawal.
2 The NEST Every Advantage scholarship is open to babies 0-18 months. Visit NEST529Direct.com/EveryAdvantage for official rules.
Investments Are Not FDIC Insured* | No Bank, State or Federal
Guarantee | May Lose Value
*Except the Bank Savings Individual Investment Option
Disclosure: Many thanks to NEST 529 for sponsoring this post, and for providing college savings plans for families.
