Saving: Pay yourself first

Car payments. Insurance. Gas. Clothes. School activities. Sports. Dates. The list goes on.

Often when teenagers are learning to manage their first paychecks, the priority is spending. Utah Saves Week, which is February 27 through March 3, offers an ideal opportunity to expand your teenager’s view by reminding them about the importance and advantages of saving.

In connection with America Saves Week, my529 is co-sponsoring Utah Saves Week to encourage starting or continuing a habit of saving.  

Together, take some time to discuss your student’s plans for their education after high school. You can use my529’s College Savings Estimator to figure out some of those upcoming costs. Then work together to establish a goal for their college savings.

Talk with your teenager about how they can make a meaningful impact toward their goal by setting aside some money. Teach them the notion that you can pay yourself first by saving. Even small amounts saved regularly can add up.

Creating a habit of savings will benefit them during their school years and beyond.

One way to make your habit stick is to set up automated contributions. A few minutes is all it takes for your teenager to schedule automatic payments to both their savings account and their my529 educational savings account. That way, they are learning early to make their money work for them, while planning for their future. Suddenly, the sticker shock of every day expenses such as school activities, new gear for their favorite sport, or gas for their first car isn’t so daunting.

Likewise, with regular automated contributions to their my529 account, those first payments for tuition, books, or other qualified education expenses don’t have to be overwhelming, either. Learn more about my529, Utah’s educational savings plan, at my529.org.

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.

Talk with your teenager about how they can make a meaningful impact toward their goal by setting aside some money.