By Vince Meyer, Marketing and Community Relations Specialist for WA529 (Estimated reading time: 2 minutes)
Navigating life with a newborn can be exhausting, even all-consuming at times. It’s also filled with more awe and joy than ever imagined. Time flies by as clothes are quickly outgrown and motor skills are developed, including discovering the ability to create ear-piercing screeches. Most exciting is their unique personality breaking through, shaping their outlook on the world.
As parents of a newborn, we all want the best for our children, and investing in their future is one of the most loving things we can do. Starting to save for your child’s education as early as possible can make a world of difference, and a Washington Education Savings Plan (WA529) is one of the most effective ways to do just that.
One of the key benefits of a 529 plan is the tax advantages it offers. Contributions for both WA529 plans, GET and Invest, grow tax-free, and withdrawals for qualified education expenses are also tax-free. This means that every dollar you save is working even harder for your child’s future. By starting early, you harness the power of compound interest, allowing your savings to grow significantly over time. Even small auto-scheduled contributions with dates and amounts of your choosing can add up, making it easier to reach your education savings goals.
Saving not only prepares you for future education costs but also instills good financial habits in your child. As they witness your commitment to their future, they’ll learn valuable lessons about saving, investing, and making informed financial decisions.
Did you know you can get a head start by opening an account for any child, even before they’re born? When opening your GET or Invest account simply name yourself both the account owner and the student beneficiary. Once your little one arrives and has a Social Security Number, you can easily update the account to reflect your child’s name. If your plans shift, you can use your WA529 account for your own education or transfer it to another family member. Speaking of family members, they often cherish the chance to celebrate a child’s birth or special milestones during the first year and want to give gifts. Inviting them to contribute to your account is a wonderful way to do just that.
Even if you get a head start, it is normal to feel anxious and question if you are doing enough. Start at any time and save any amount you are comfortable with. Beginning your savings journey early will cut down on future borrowing needs. Did you know national student loan debt currently totals more than $1.77 trillion?
It’s understandable to feel overwhelmed by the rising costs of education, but remember, every little bit counts. By taking that first step today, you’ll pave the way for exciting opportunities for your child—whether it’s attending college, pursuing vocational or technical training, or exploring other educational avenues. You can always review your goals, progress, and projection and change what you are doing at any time.
Consider your WA529 plan options at 529.wa.gov and begin your journey of building your child’s future.
About the Author
Vince Meyer is the WA529 Marketing and Community Relations Specialist and a current customer who strongly believes in building the future for his niece and nephew, Barbara and Joseph. Washington Education Savings Plan (WA529) helps families save for higher education expenses. With tax benefits, flexible contribution options and nationwide choice of colleges, it’s easy to start saving today. To learn more, visit 529.wa.gov.
