Wisconsin’s College Savings Plan
There are a lot of parents that look into the eyes of their newborn child and dream of the future they might have, the goals they might achieve, the dreams they might turn into reality. But, most parents probably don’t think about how their small child will accomplish all that…much less the actual cost of achieving the goals through education.
If all parents started thinking about the rising cost of education when their children were just infants, handling the economic pressure years later would be simple. Imagine putting a dollar a day into savings account for your child when they were just one year old. For 17 years, you’d accumulate $6,205. This, of course, doesn’t take into account interest earned. But regular savings accounts won’t get you where you need to be.
This is where the Wisconsin College Savings Plan can help. EdVest works almost like a 401k or IRA by allowing you to invest contributions into mutual funds or other similar investments. The plan itself offers investment accounts that range from aggressive to moderate to conservative depending on what you are comfortable with. As with all investment accounts, the amount in there may go up or down depending on the option chosen.
EdVest allows any family member to open an account as long as they are 18 years or over. The account is in the name of the child, but the account owner still has control. The money in the account can be used for tuition, fees, room and board, books and other higher education eligible expenses…and it can be used at most public and private institutions nationwide. Even if the child doesn’t go to college, but heads off to a trade or technical school or wants to be the next Top Chef, EdVest money can help them pay for that dream!
You can even use an EdVest account for yourself! Let’s say your child doesn’t go to school after high school but you have put all that money in there. You can take it and put yourself through school – and maybe change careers or just expand your knowledge! As long as the money is used for post-secondary education, there are no penalties for withdrawing it from the EdVest account!
And, two of the best benefits of an EdVest account – you receive up to a $3,000 per year tax deduction on your state taxes! This applies to grand-parents, aunts and uncles who have opened an account for a child – not just parents! And the second – all earnings are exempt from state and federal income tax when used for educational costs.
Want to learn more about Wisconsin’s College Savings Plan? Click on www.edvest.com and start helping a child achieve their goals and make those dreams a reality.
Fast Facts on College Savings
The number of accounts in Wisconsin’s College Savings Program
The average amount of debt a student carries upon graduation from college
You can open an EdVest account for as little as $15 a month
The amount of money invested in Wisconsin’s College Savings Program
How much more a college education is worth over the course of a lifetime
How much a child born today will pay for college at a public institution
The average tuition inflation rate each year (more than double the general inflation rate)