Invest in a Child’s Education

September is College Savings Month

September is College Savings Month.

Illinois State Treasurer Michael Frerichs, who also is the Vice-Chair of the College Savings Plan Network, reminds families about the importance of saving for a child’s education.

In some areas, the rising cost of college tuition outpaces inflation. Illinois families can prepare for these costs by using either of the two 529 college savings programs provided through the treasurer’s office: Bright Start and Bright Directions.

To help families save money, Frerichs negotiated lower fees for both programs so that families can keep more of their money. The programs offer flexibility, diversification and a host of quality fund families including Vanguard, T. Rowe Price, DFA and others.

Bright Start accounts can be purchased directly by an individual. Today, there are approximately 308,000 accounts worth an estimated value of $6.4 billion. Bright Directions accounts can be purchased through a financial advisor. Today, there are approximately 337,000 accounts worth an estimated value of $5.5 billion.

Both programs also feature attractive benefits for Illinois taxpayers. Earnings grow tax-free and contributions are tax deductible up to $10,000 ($20,000 if married filing jointly).

Savings also can be used for qualified trade school programs.

To learn more, click here.

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