Parents who begin saving early for their children’s education with a 529 college savings plan can help their children have a more successful future.

“Education costs are rising and are expected to continue to do so,” said Carolyn Fittipaldi, Marketing Director of the Education Trust Board of New Mexico, the state agency that administers The Education Plan®, New Mexico’s 529 plan. “As costs rise, it’s important to begin saving as soon as possible. Opening a college savings account early in a child’s life allows for money invested to grow over time and through the power of compounding.”

According to the recent 529 Industry Analysis published by ISS Market Intelligence, tuition costs are on the rise, as are families’ inability to pay for higher education out of pocket. The report states that “over the past 15 years, the cost of college tuition has inflated by 35% for private college, 45% for four-year public colleges and 30% for two-year public colleges, as measured in 2020 dollars.” To compound the issue of affordability, the report found that financial aid levels allotted per student are unable to keep up with rising tuition costs.

Despite rising costs, higher education can significantly improve future opportunities, as the study found that “there is a clear hierarchy in both income level and the growth rates of income of individuals as their level of education increases.” Additionally, higher education levels are linked to lower unemployment rates.

“Higher education can lead to a brighter future, and with a 529 savings plan, it’s easier for families to afford to afford college costs,” added Fittipaldi. “The Education Plan® is a great option for all families, and accounts can be opened for as little as one dollar and added to as budgets allow.”

The Education Plan® can be used to cover tuition, housing, meal plans, books, supplies, computers and fees at any school nationwide—vocational or trade schools, professional schools, colleges and universities.

The Education Plan® also offers tax benefits. Contributions and earnings grow free of state and federal taxes, and are tax-deductible on some state income tax returns. Withdrawals are also tax-free when used to cover qualified education expenses.

For more information on The Education Plan, go to theducationplan.com or call 1 (877) 337-5268