Monday, April 29, 2013
A to Z Challenge: Y Is For Youth
Is For Youth and Their Future
Today is April 29 or 4/29, so it seems an appropriate day to talk about college 429 savings plans.
These are my grandchildren.
They are five and seven years old. Megan will head to college in 2124 and Hunter two years later. It is scarey to think about what college will cost by then.
When Megan was born I promised her mother that I would not shower her with gifts of toys and useless trinkets. Instead, I fund a 429 Oregon College Savings Plan for each of the girls. (Well, I do, now and then, spoil them with gifts also.) I opened the accounts when Hunter was born and a deposit is automatically deducted from my savings account every month. In Oregon deposits to a 429 account are tax deductible on our state return up to $4,345. a year for joint returns. Interest that the money generates is tax free if used for qualified higher education expenses. When I first opened the accounts only $1200 a year was deductible, so that's what I've been depositing every year. I checked the Oregon Savings Plan site and saw that amount has been increased, so I'll probably increase my deposits.
I don't make a lot of money...heck I'm retired on a fixed income, but we're frugal and have no debt. We live within our means. We can afford to put a little aside each month for the future of our grandchildren. So that's what we do.
I don't kid myself that we are saving enough to pay fully for their college, but every little bit will help, and we take advantage of the tax savings to help us fund this. Year after year the deposits and the interest add up.
Take time today to explore the 429 plans that are available in your state and others for the future of someone you love. They'll thank you for it.