Take Your First Steps Towards College Savings With GET

 

Submitted by Guaranteed Education Tuition (GET) Program

Lil GET GradsChildren grow up fast. One of the great joys in life is to watch them grow and experience all that life has to offer. It’s especially fulfilling to be with them as they experience life’s challenges for the first time, and to celebrate the rewards of overcoming those challenges. From the first day of school to the first day of college we do everything we can to make sure that they are prepared for each new milestone as it comes their way.

With the ever-rising cost of tuition, ensuring that our children have the opportunity to meet future challenges can seem overwhelming. The average student graduates with more than $29,000 in student debt, and with an average annual tuition increase of 9.5% in our state universities over the past decade, helping our children avoid this fate requires a sound strategy and significant preparation.

The most important thing to keep in mind in preparing for college costs is that every bit of saving helps. Pick a savings plan that works for you, make regular contributions, and begin when your children are young. Starting early can be one of the most influential factors in your strategy. According to the Center for Social Development at Washington University in St. Louis, children who have a college savings plan in their name are seven times more likely to attend. The earlier your children can see that you are investing in them by putting money aside for their future, the earlier they will set their sights on college. Additionally, the sooner you start, the more time your savings have to grow.

An especially effective means of starting your college savings is through tax-advantaged 529 prepaid college tuition plans. Washington state’s 529 plan, the Guaranteed Education Tuition (GET) Program, allows you to buy tuition units today that can be used to pay for college in the future. The value of a GET account is guaranteed by state law to increase in value along with the rising cost of in-state tuition, regardless of how much it increases in the future. The money you invest will grow tax-free, safe from the ups and downs of the stock market, and will be there when your child is ready to pay for tuition and other qualified higher education expenses.

GET first stepsAs parents, we want to ensure that our children have the freedom to follow their dreams, whatever they may be. That’s why although the value of your GET account is based on the cost of tuition at Washington’s most expensive public institution (typically the University of Washington), the units can be used anywhere that accepts federal financial aid. That means that your GET account can help pay for the costs of college if your child decides to attend an out-of-state school, a community or technical college, or graduate school. In many instances, GET can even be used to pay for study abroad programs.

Often the most difficult part of saving for college is taking the first step. GET offers a variety of options to simplify the process, from custom monthly payment plans to pay-as-you-go (lump sum) deposits. Grandparents and other relatives can also easily contribute towards your child’s future education; a contribution to a child’s college savings makes a special gift for any occasion, and is one that’s sure to last for years to come. The key to an effective savings strategy is to pick a system that works for you and make regular contributions.

Kids grow up fast. One day they’re starting preschool, the next they’re off to college. Prepare for their future today and reward yourself with peace of mind as you watch them grow and develop.

GET is open for enrollment from November 1st until May 31st, and newborns up to their first birthday may be enrolled throughout the year. Visit www.get.wa.gov to learn more about the program and enroll online. Save today for a secure tomorrow.