Many industry experts urge families to consider student loans as a way to pay for college tuition rather than letting young adults use student credit cards to pay for books, courses and other school expenses.
But an OppenheimerFunds survey recently found that many parents worry about their kids leaving school with debt and are instead keeping saving for college as a top priority, despite a myriad other pressing bills.
In an effort to help parents integrate college savings into their broader financial plans, members of the College Savings Plan Network have dubbed May 29th as 529 College Savings Day to remind families there are tax-advantaged methods to help save now for future educational costs.
“There is a risk with any type of investment, including investing for college. 529 plans can help consumers manage that risk. The bigger risk for parents today is not doing anything to prepare for college costs,” said Jackie Williams, a spokesperson for CSPN.
Typically lower fees, state oversight of plan management, and flexible amount and methods of contributions are some of the benefits of using a 529 college savings plan, according to CSPN.
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