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3 Reasons Why a 529 College Savings Plan is More Affordable Than You Think

By James Ray, Senior College Savings Consultant at TIAA

July 2016

1. You can open an account with as little as $25, in most cases.

This small initial investment has the opportunity to pay off in a big way. Any money you invest now can help your grandchild pay for educational expenses like books, supplies and certain living expenses later.

2. Your account can grow federal tax-free.

The sooner you start investing, the more time your contributions can grow tax-free. Any earnings from your initial gift are automatically re-invested into your account, so you can help maximize your contribution’s growth potential.

3. It’s a flexible savings strategy.

Not everyone is in the same financial situation, which is why 529 college savings plans were designed with family budgets in mind. You can open an account with a one-time contribution or choose to contribute monthly.

Read other articles from our “Latest from James Ray” series here.

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