{We have partnered with VHEIP to bring relevant and important information to BVTMB readers through this sponsored post.}
April is Financial Literacy Month! We’re excited to work with the great people at VSAC, administer of the Vermont Higher Education Investment Plan (VHEIP), to bring you information that will help you make solid college-planning decisions. No matter what age your children are, it’s time to start saving for college!
VHEIP is Vermont’s official 529 college savings plan, administrator of by VSAC for the state. VHEIP is the only plan that provides a state income tax credit to Vermont taxpayers of 10 percent of the first $2,500 contributed per beneficiary, per year (a tax credit of up to $250 per beneficiary per year – or up to $500 per beneficiary per year for joint taxpayers).
Beyond that amazing perk, why should you be investing in your child’s college education now?
While They’re Small, Think BIG
With Vermont’s official 529 college savings plan, it’s easy and smart to save for college now when your children are small. Doing so creates education opportunities for your child’s future. We know from research that students from families who save even small amounts for college are three times more likely to attend and complete college, and the results of that investment continue for a lifetime. Reports show that college graduates experience higher earnings, higher job satisfaction, and healthier lifestyles than individuals without a college degree. Read more about the value of a college education, and how to create a plan for college.
By contributing now …
Your savings can add up over time.
By saving early and contributing regularly now, you’ll be better able to help pay for college when your children are ready. Even small amounts can add up over time, as your child grows.
Your savings reduce future debt.
Because most families are unable to save 100% of the costs for college, students and their parents typically rely on education loans to pay for at least part of the college expense. By putting aside even a modest amount of savings now, families can reduce their reliance on loans, and earn interest rather than pay interest on money borrowed to cover those costs. See how saving and investing for college instead of relying on loans can cut your costs by more than half.
Put college in their future by starting small now.
For most families, saving enough to pay for the costs of higher education can seem overwhelming. So it’s important to keep in mind that even small amounts of savings can help make a college education possible.
Vermont’s 529 college savings plan can help you put a child’s college education within reach. With VHEIP, you can open an account with just $25 or give a gift of any amount.
There’s no better time to begin.
With VHEIP, Vermont taxpayers are eligible to get a 10% Vermont state income tax credit on annual contributions. Don’t forget to take your Vermont income tax credit when you fill out your taxes. Your contributions made during 2016 into the Vermont Higher Education Investment Plan can cut your tax bill!
Read more about the Benefits and Tax Advantages of the 529 Plan here!
VHEIP QUICK FACTS
VHEIP …
… has a low minimum contribution; open an account with just $25!
… savings can be used at eligible higher education institutions throughout the U.S.—as well as many schools in Canada and around the world
… savings can be used for tuition and fees, room and board, books and supplies, and education expenses for students with special needs
… is the only 529 college savings plan that offers a Vermont state income tax credit on annual contributions
… is sponsored by VSAC.
Start now to build for a child’s future with the gift of education!
