Cashtoons

Back to School

September 03, 2021

While our budgeting experiments are going at Cashtoons, we decided to dedicate this first post in September to that end-of-summer season of anticipation, excitement, and maybe a little nervousness: Back to School!

This post is for all the parents out there. Consider opening a 529 account for your kids if you haven’t yet.

529 account

  • You can open an account with $25.
  • Even a few hundred dollars in a 529 account can make it 3 times more likely that a kid will go to college, and make them over 4 times more likely to graduate.
  • College is not for everyone. 529 money can be used for a wide range of continuing education: vocational schools, culinary schools, cosmetology schools, golf academies, dance or ballet schools, etc.
  • If your child gets a scholarship, you can withdraw that amount of money from the 529 account without paying a penalty. (You will have to pay taxes on it.)
  • It takes less than 10 minutes to set up the account.

Sources

sources

https://www.oregoncollegesavings.com/

https://www.washingtonpost.com/business/2019/12/12/even-if-your-child-is-just-few-years-away-college-its-not-too-late-fund-plan/

https://www.edmit.me/blog/where-can-you-use-a-529-plan


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