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AZ529 Plans and College Savings Month
By Hon. Kimberly Yee, Treasurer of Arizona
In honor of National College Savings Month, my office has proclaimed September as AZ529 College Savings Month. Starting a state-sponsored AZ529 Education Savings Plan is just one of the great tips I share with families across the state as I encourage them to prepare for and achieve their higher education and career goals to secure their dream jobs. As the Treasurer of Arizona, I help expand opportunities for all Arizona families to access higher education, from traditional college, vocational training, and apprenticeships. With an AZ529 Education Savings Plan, families can start to put aside savings this September to grow over time and provide the gift of higher education to loved ones.
While nearly all parents believe college and career training is an investment in their child’s future, only one-third have a plan to pay for education beyond high school. This month, I’d like to share tips to celebrate College Savings Month and help families prepare for the future:
College Savings Month Tips
1. Research Options and Costs: Learn about the cost of various postsecondary education options, including trade school, private, public, and community colleges, as well as apprenticeships.
2. Save Early and Often: Saving $50 a month from a child’s birth = nearly $20,000 in college/education savings. Remember, you can start at any time, by increasing the monthly contribution based on your child’s age. You can also make contributions as often as you can to take advantage of compounding interest.
3. Enlist Family and Friends: Grandparents, relatives, and friends can contribute a small amount for birthdays/holidays with a small gift. Children can also contribute to their own fund – it means more if they also sacrifice.
4. Apply for Scholarships: Fill out a FAFSA and apply for every scholarship and grant you can find.
5. Celebrate Success: Track results and share progress with your child. Just knowing a parent or grandparent believes in them enough to open a 529 account is a strong academic motivator.
6. Enter the “Dream, Write, Win” AZ529 Essay Writing Contest: Arizona 5th and 6th Graders can now share about their dream job for an opportunity to win $529 toward college and career savings at
. Entries are now being accepted at AZ529.gov until October 5th. Twenty winners will be selected from across the state, representing each Arizona county.
The AZ529, Arizona’s Education Savings Plan, is a tax-advantaged investment plan designed to help families save for a child’s future education expenses. AZ529 earnings grow tax-free, and anyone in the family can add to the account. Contributions to the AZ529 plan can be deducted from Arizona state income taxes up to $4,000 per beneficiary for a married couple filing jointly or up to $2,000 per beneficiary for single filers. Funds may be used at accredited public and private colleges, universities, community colleges, technical training schools, and apprenticeship programs in any state. With recent changes to the law, 529s can also be used for recognized post-secondary credentials and credential programs and expenses. They can also be used to pay for tuition, fees, books, and even internet access.
Looking to learn more about the statewide essay contest and additional ways to save? Visit
. Materials have been translated into Spanish as well as Navajo to ensure even more families across the state can participate. Remember, it is never too early and certainly never too late to begin saving.
The Honorable Kimberly Yee is the Treasurer of Arizona. When she took office, she asked for the AZ529 Education Savings Plan to be placed under her administration. In a short period of time, Arizona’s 529 accounts have increased by 57,390 new accounts with $2.46 billion in AZ529 assets under management. She has reached diverse communities and families in every county of our state and increased access by translating materials into Spanish and Navajo. For more information about the AZ529 Education Savings Plan, visit az529.gov.
