Celebrate May 29 by Starting a College Savings Account for Your Loved One

Across the country May 29 is known as 529 College Savings Day, and the state of Georgia’s college savings plan, the Path2College 529 Plan, hopes

to use this day to increase knowledge and participation in the state’s 529 college savings program according to a press release.

 

“Our goal is to raise awareness among Georgia families about the importance of financial planning and saving for a college education,” said Mitch Seabaugh, executive director of the Path2College 529 Plan in the press release. “There are more than 2.5 million children under the age of 18 in Georgia, and only four percent currently have a Path2College 529 Plan account.”

 

According to Georgetown University Center on Education and the Workforce, 59 percent of America’s jobs required at least some college education, and by 2018, it is anticipated that more than 63 percent of American jobs will require some higher education. Additionally included in the press release, the Center reports that by 2018, the postsecondary education system will have produced 3 million fewer college graduates than demanded by the labor market.

 

According to the press release, Seabaugh hopes to increase the number of students who have a college savings account, and his team works throughout the year to increase knowledge about the state’s plan and about the importance of financial planning for higher education. “We currently have an annual newborn sweepstakes to help get the attention of new parents, where one baby born each year will win $5,529 for his or her college savings,” said Seabaugh in the press release. “Saving regularly over time is the best way to establish a strong financial foundation, but, it’s not only

important for parents of young children to save. No matter what age you start saving, every dollar saved is a dollar that you don’t have to borrow.”

 

The Path2College 529 Plan was established in 2002. Contributions to the Path2College 529 Plan are eligible for a state income tax deduction regardless of annual income. Contributions are deductible for Georgia income tax purposes up to $4,000 per year, per beneficiary, for those filing a joint return and up to $2,000 per year, per beneficiary, for those filing a single return.

 

Categories: Georgia News