Parents need to know about 529 college savings plans

When I see college graduates celebrating their achievement, I can’t stop wondering about all the loans many will be paying off for years to come.

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But it also makes me relieved that my husband and I set up 529 plans for our children.

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This is why I’m celebrating 529 College Savings Day on May 29 (get it, 5/29?). And the best thing is, I don’t have to buy a greeting card.

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Nevertheless, I was surprised to learn that most people aren’t even aware of this vehicle to save for college, even those who are likely to have the income to make this investment. For the last three years, the financial firm Edward Jones has commissioned a survey to gauge what Americans know about 529 plans. The survey found that only 30 percent of survey participants could correctly identify what a 529 plan is about. And the awareness is dropping. In 2012, 37 percent of respondents correctly identified a 529 plan from among four potential options. Some thought it was a retirement account, a form of life insurance or a low-cost health care plan. Among those with a household in…………………continues on HeraldNet