Graduation weekends are upon us. This is a time of year to celebrate the hard work and dedication of students and teachers and congratulate those we know who have succeeded at earning a degree and advancing into their next phase of life. For some that can mean going on to college, technical school, or a higher degree. And while these are worthy pursuits, the reality is they usually come with a pretty big price tag attached.
Paying for college is a big endeavor for most, but with some planning and foresight, it doesn’t have to be impossible. The State of Kansas offers some very simple solutions for getting a jumpstart on college savings, and the sooner you get started the better. Here’s a brief summary of a couple of very easy options and how they work:
529 Accounts: These are investment savings accounts you as a parent or grandparent can contribute to, tax-deferred. Put a little bit in automatically from each paycheck or set aside something each month to contribute. Large or small, these investments earn dividends over time and you get to choose how and when to contribute. With regular contributions to this kind of investment, you can watch your money grow into an amount that could fund your child’s future educational goals, at accredited higher education institutions anywhere in the United States. These funds can be used for qualified expenses at 2- or 4-year college, vocational school, technical college, graduate school, and even K-12 education institutions. The state of Kansas also allows you to take an annual tax deduction of up to $3,000 in 529 contributions if you’re single or $6000 if you’re married.
K.I.D.S. matching grants: The State of Kansas wants college to be achievable for all students. For families that may struggle financially to come up with the money to fund a child’s higher education goals, K.I.D.S. matching grants are a wonderful option to grow your money faster than you could on your own. You must live in Kansas and earn an income less than 200% of the federal poverty level. With these qualifications you can open a 529 account with any amount you wish and the state will match whatever you contribute, up to $600/year.
Year after year there are success stories of students graduating whose parents and grandparents took the time to think ahead on their behalf, putting away a little at a time and watching that money grow into a debt-free college experience for their new graduate.
Elaina was one such student. Her grandmother, Guadalupe Martinez started an account for her when she was little, contributing $25 per paycheck whenever she could. Upon Elaina’s graduation from high school, her grandmother presented her with a check that brought Elaina to tears. It was enough to get her through college debt free, which she did.
This is not an uncommon tale.
Kids across Kansas have been blessed with the opportunity of education because of the wise planning of someone in their life who cared enough to think ahead and save. Whether it is one of the above options or another kind of savings vehicle, I challenge Kansans during this special time of year to think ahead for someone they love and find a way to save. Every little bit adds up, and investing in a child’s future education now is one of the best gifts you can give them.
Jake LaTurner is the Kansas State Treasurer.