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Here's how you can save for higher education

In honor of College Savings Month, the Michigan Education Savings Program is sharing six tips to help Michigan families get started on a college savings path
SooLeader Staff
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NEWS RELEASE
MICHIGAN DEPARTMENT OF TREASURY
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LANSING — September may be back to school for many families, but did you know it’s also College Savings Month? Celebrated throughout September, College Savings Month aims to encourage families to save for higher education and learn about the benefits of a 529 plan.

If you haven’t started saving for your loved one’s college or career training yet, that’s okay! This is a great time to plan. In honor of College Savings Month, the Michigan Education Savings Program (MESP) is sharing six tips to help Michigan families get started on a college savings path.

  1. Open an MESP account – MESP, Michigan’s direct sold college savings program allows Michigan families to save for higher education while taking advantage of exclusive tax savings. Michigan taxpayers may receive a state income tax deduction from their MESP 529 account contributions (up to $10,000 for married couples filing jointly). Additionally, earnings grow tax-free when savings are used for qualified higher education expenses including tuition, books, certain room and board expenses, computers, and more.
    Funds can be used at eligible universities, community colleges, technical or trade schools, and professional schools nationwide and abroad.
  2. Start Saving Now – It is never too early or too late to start saving for a student’s future higher education expenses. While families are strongly encouraged to open a 529 account when a child is born, you can also consider doing so at other exciting milestones, like kindergarten registration or the start of middle school. Just remember, the earlier you start saving, the more time your money has to potentially grow and benefit from compound earnings.
  3. Invite Gifting – College Savings Month can be celebrated by anyone! Grandparents, aunts and uncles, or family friends can join in by helping to save for a child’s education. Instead of the latest toy or game, invite people to contribute to a loved one’s MESP account. Gifting is perfect for birthdays, holidays, graduations, and other special occasions. To learn more about MESP’s Ugfiting platform, visit Gifting.
  4. Encourage Student Contributions – Is your student old enough to have a summer job or earn an allowance for household chores? Consider encouraging them to contribute to their 529 account. Even a small amount can create a shared sense of responsibility and a better understanding of the sacrifice being made on their behalf.
  5. Consider Recurring Payroll Contributions – Starting early can be the first key to successful savings. But the second is to contribute to your goal consistently over time. A great way to do this is by setting up payroll direct deposit to your 529 accounts in any amount that fits your budget – even $25 per paycheck can add up over time!
  6. Boost your savings with Upromise – Upromise is a free service that helps families save for college with cash back rewards from everyday activities such as online shopping, dining, grocery shopping, etc.  For more information, visit: https://www.misaves.com/program/upromise

This September, as students start another year in the classroom, celebrate them with College Savings Month! You can help set them on the path to achieving their higher education goals with an MESP 529 account.

For more information about MESP and to open an account, visit MIsaves.com, or follow us on Facebook.

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