HILLSBOROUGH COUNTY, Fla. — May 29, known as 529 Day, is when college savings programs across the country raise awareness about the importance of savings. It comes with incentives and promotions to encourage people to enroll in savings programs.
“April and May are when families are deciding college acceptance and decision days so it is a good time to be thinking about it," said Mary Morris from the College Savings Plan Network.
Morris is encouraging young adults to start saving sooner rather than later for education. She said the earlier you start, the more time you have for your investment to grow.
“The end game is whatever you save today is money that they do not have to borrow later, and that really is an advantage," said Shannon C. Smith with the Florida Prepaid College Board.
Smith explained that in Florida, there are two plans to help you get started saving: the Florida 529 Prepaid Plan and the Florida 529 Savings Plan. Which plan is better for you depends on your budget and goals.
With the Florida 529 Prepaid Plan, you pay a monthly payment that can then be used to cover tuition and fees.
“A prepaid plan allows you to pay now at today's prices to cover future college tuition, but those prepaid plans can only be used for tuition, and they do require a monthly payment,” Smith said.
Meanwhile, the Florida 529 Savings Plan is a little more flexible. There isn't a monthly payment, so you put money in the account at your own pace. The money can then be used to cover a range of expenses, including tuition, housing or books.
Both options are tax advantage plans.
“It really is about starting early so when it comes time for them to save and go to college, you're not stressed out," Smith said.
They are running a promotion for 529 Day—if you enroll in a 529 savings plan, you will get $50 added to your account.
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