May 1, 2024

This 5-2-9 Day, You're a Smart Cookie!

A few smart moves to maximize your 529 savings.

Happy National 5-2-9 Day - the date set aside to encourage families to begin saving for a child’s future education expenses. It’s also the day for you to pat yourself on the back. You’ve already made the smart decision to save for your child with South Carolina’s Future Scholar 529 College Savings Plan.

This year, mark 5-2-9 Day, Wednesday, May 29, 2024, by celebrating your genius. Make a few brilliant moves to maximize your 529 savings, and you’ll be an even smarter saver!

Mother holding a baby while working on her laptop

Genius Move #1 – Don’t Wait for big contributions.

Your Future Scholar 529 plan features tax-free compounding. That means the longer your money is in your account, the more time it has to grow. On the other hand, the longer you wait to save, the more you will have to contribute each month to meet your savings goal. By making contributions of any size early, you let compound interest do some of the work for you.

Genius Move #2 – Set up automatic contributions.

Automatic contributions let you “set it and forget it.” Link your checking or savings account to your Future Scholar account and set the amount and frequency you’re comfortable contributing.  You can always make changes, if circumstances change for you and your family.

Genius Move #3 – Increase contributions whenever possible.

Is your child finally potty trained and out of diapers? Moving from day care to school? Turn the money you save into college savings by making larger contributions to your Future Scholar plan. Did you get a tax refund or a bonus at work? Celebrate by adding the extra funds to your college savings.

Genius Move #4 – Welcome Future Scholar gifting.

Let friends and family know you have a Future Scholar account. Make sure they’re aware your child would welcome a contribution toward a successful future as a birthday gift or any holiday present. Send Future Scholar eGift invitations to loved ones before celebrations so they can easily make a contribution.

Genius Move #5 – Teach your child about Future Scholar.

Be sure to explain to your child that you’ve set up an account dedicated to saving for future education costs. Encourage your child to contribute money from chores or small jobs to the account. Your child will experience the pride of participating and earn the value of having “skin in the game.” 

Happy 5-2-9 Day to you, you smart cookie - and your Future Scholar!