Santa Fe, NM - February 7, 2024 — America Saves Week takes place February 19–23 and encourages people to explore practical savings strategies. Recent data from Forbes indicates 66% of Americans were able to save money in the past year and the average American has $65,100 in personal savings. According to Forbes, Americans are taking three major steps to address economic uncertainty: 64% are cutting costs, 50% are building savings and 41% are delaying large expenses.
Since 2007, America Saves Week has been an annual celebration as well as a call to action for Americans to commit to saving successfully. One vehicle for families to consider is 529 education plans, which provide a tax-advantaged option to help pay for future education. The Education Plan®, a 529 education savings plan sponsored by the state of New Mexico, provides families with a reliable tool to pay for various educational costs including tuition, room and board, books, computers, and software. Money invested in 529 plans can be used at any accredited trade or vocational school, college, or university throughout the nation. Funds can also be used to pay for K-12 private school tuition, apprenticeship expenses, and student loan repayment.
"Education is an investment in the future, and 529 plans offer a practical approach to make that investment wisely,” said Natalie Cordova, Executive Director of The New Mexico Education Trust Board, the organization that administers The Education Plan®. “During America Saves Week and beyond, we encourage families to take the time for future-looking financial planning. Any time a family can save money, it’s building opportunity. When that money is saved for future education, it’s even better, as higher education can lead to greater employment opportunities, higher salaries, and more financial stability.”
Unlike traditional savings accounts, 529 plans offer tax-free growth on earnings when utilized for qualified education expenses. This feature allows people to see their contributions grow over time without being subjected to taxes, enhancing the overall value of their savings. Withdrawals are also tax-free when used to pay for qualified education expenses. In some states, contributions to 529 plans are also deductible on state income tax returns. America Saves Week provides an opportunity for families to explore the practical advantages of 529 plans, promoting financial responsibility and readiness for upcoming educational milestones.
For more details on The Education Plan® and its role in supporting education savings, please visit www.TheEducationPlan.com.