This post was sponsored by Bloggin’ Mamas through Florida Prepaid, all opinions expressed are my own.
While my son is only 18 months old, I’m constantly thinking about his future. If he doesn’t eat enough carrots will he have vision problems? If I give him too much sugar will he develop diabetes? And the big one: how will we afford college if he is accepted into a wonderful school? Luckily as a Florida resident, we are able to take advantage of a great savings program that will enable our son to get the education he deserves.
What is a 529 Savings Plan?
529 savings plans are named after section 529 of the Internal Revenue Code 26 U.S.C. § 529 and are designed to encourage saving for future higher education expenses of a designated beneficiary. Many states offer 529 savings plan options, including Florida Prepaid.
Money from a 529 plan can be used for tuition, fees, books, supplies and equipment required for study at any accredited college, university or vocational school in the United States and at some foreign universities. The money can also be used for room and board, as long as the fund beneficiary is at least a half-time student. Off-campus housing costs are covered up to the allowance for room and board that the college includes in its cost of attendance for federal financial-aid purposes. Qualified education expenses do not include student loans and student loan interest. There is legislation currently going through Congress that will expand the qualified expenses.
What is Florida Prepaid?
Florida Prepaid is the largest, longest running and most successful prepaid program in the nation and we are here to help Florida families understand the importance of investing in education and make it is easy to do so. Florida Prepaid offers two types of savings options: Prepaid Plans and 529 savings plans. There are five different types of Prepaid Plans, and they can only be purchased during Open Enrollment (which usually runs from Oct.-Feb.).Every college savings plan opened with us represents an investment in a child’s future, and in our state.
The Florida 529 Savings Plan
The Florida 529 Savings Plan can be started at anytime and only requires a $25 initial deposit to open. Even if you can’t save for your child’s entire college education, starting something is always better than doing nothing. The funds in a Florida 529 Savings Plan can be used for any qualified higher educational expense, including tuition, room & board, textbooks, graduate school and much more. This gives you extreme flexibility to use the funds as you see fit, for whatever your child may need. And should those needs change during his/her college years, individuals are free to adjust as well.
The Florida 529 Savings Plan offers you the ultimate in flexibility. Simply choose from the investment options, then contribute as much and as often as you’d like to suit your budget and goals. Each investment option, such as our popular age-based option that automatically allocates contributions based on the age of the child, is independently run by professional investment managers. There are 11 investment options let you invest in any way you feel comfortable. From more aggressive to more conservative options, and with age-based and fully customized approaches, you have as much control as you want over how much you invest and where it’s invested. And as the years go by, you’re free to change contribution amounts and how they are allocated at any time.
This program has taken so much stress of James and I’s planning for Cash’s future. It’s natural to sweat the small stuff, but it’s awesome that we have one less thing to worry about.