Avoid debt, alleviate stress

Toward the end of 2022, the amount of debt held by U.S. households reached a record $16.9 trillion. The adverse link between debt and increased stress and anxiety is well-established: the more overwhelming your money issues are, the more of an impact it will have on your well-being.  

This is why April’s Financial Literacy Month (officially known as National Financial Capability Month), asks us to take some time this month to examine our financial wellness, including having adequate savings for future expenses, and trying to avoid debt.

The costs of education can be significant, and my529, Utah’s educational savings plan, wants to help you plan ahead for those educational expenses.

With a my529 account, the financial burden of student loans and other educational expenses can be reduced, and the stress and anxiety that comes with debt can potentially be avoided.

Here are five great reasons to consider beginning or increasing your savings in your my529 account today.

1. Encourages savings. Saving for education is an important aspect of overall financial wellness, and my529 accounts can help boost your habit of regular saving. By setting up a my529 account, you create a dedicated savings account for education expenses while taking advantage of the tax benefits and investment options available to you.
2. Easy to use. my529 accounts are easy to set up and manage, making them a great choice for those looking to improve their financial wellness. There are no income restrictions or age limits, and the plans can be opened with a deposit of any amount. In fact, an initial deposit is not required to open an account, so you have plenty of time to figure out how to begin saving.
3. Low fees. my529 accounts typically have low fees when compared with other 529 plans, making my529 a cost-effective way to save for education. This allows you to maximize your savings potential while minimizing fees on your investment returns.
4. Tax advantages. 529 plans are designed to create tax incentives for those saving for education. The money in a my529 account grows tax-deferred, and withdrawals for qualified educational expenses are tax-free.
5. Flexible investment options. my529 offers a range of investment options that allow for choice and flexibility. This can help you tailor your investments to your individual financial goals and tolerance for risk.

Important Legal Notice

Investing is an important decision. The investments in your account may vary with market conditions and could lose value. Carefully read the Program Description in its entirety for more information and consider all investment objectives, risks, charges and expenses before investing. For a copy of the Program Description, call 800.418.2551 or visit my529.org.

Investments in my529 are not insured or guaranteed by my529, the Utah Board of Higher Education, the Utah Higher Education Assistance Authority Board of Directors, any other state or federal agency, or any third party. However, Federal Deposit Insurance Corporation (FDIC) insurance is provided for the FDIC-Insured investment option. In addition, my529 offers investment options that are partially insured for the portion of the respective investment option that includes FDIC-insured accounts as an underlying investment.

The state in which you or your beneficiary pay taxes or live may offer a 529 plan that provides state tax or other benefits, such as financial aid, scholarship funds and protection from creditors, not otherwise available to you by investing in my529. You should consider such benefits, if any, before investing in my529.

my529 does not provide legal, financial, investment or tax advice. You should consult your own tax or legal advisor to determine the effect of federal and state tax laws on your particular situation.

With a my529 account, the financial burden of student loans and other educational expenses can be reduced, and the stress and anxiety that comes with debt can potentially be avoided.