On the heels of 529 Day, Illinois families received a reminder from State Treasurer Michael Frerichs that saving for a child's future education is a step they can take now by opening or adding to a Bright Start 529 account. "When a child knows he or she has a college savings plan, that child is three times more likely to attend college," Frerichs said, highlighting the importance of such financial preparation for higher education, as per a state press release.
Recognizing the 529 Day, it serves as a nudge to start considering how education will be funded years down the line. Highlighted by Frerichs' statement to Illinois.gov, a contribution by an adult to these accounts sends the message to children, ‘I believe in you.' The Treasurer's remarks underscore the notion that financial investment equates to an investment in belief, fostering a sense of expectation and promise in young learners.
Frerichs oversees both the direct-sold Bright Start and the advisor-assisted Bright Directions 529 College Savings plans. Illinois taxpayers can benefit from tax advantages when contributing to either plan, with the investments growing tax-free if they are used for qualified education expenses. These plans offer flexibility regarding who can contribute and do not impose burdensome entry fees or contribution minimums, ensuring accessibility to a wider range of families. The mobile app launched last fall further facilitates managing these accounts, allowing users to monitor and add to them with ease from their phones.
Ever proactive, Frerichs has been pushing for improvements to the state's college savings programs since taking office. By negotiating lower fees and refining the plan's investment options, the Treasurer is making certain that every Illinoisan can invest more of their dollars into future educational success, rather than spending them on maintenance fees for these accounts. According to an analysis by Morningstar reported on Illinois.gov, Bright Start 529 stands out nationally, earning a Gold rating and praise as a prime example of state stewardship.
For anyone interested in learning more about the various applications for the funds from these accounts or to get their account started, Frerichs has made resources available at BrightStart.com and BrightDirections.com, or by contacting the program directly through the mentioned phone numbers. This proactive approach, having grown the plan's assets to $21 billion across over 925,000 accounts, demonstrates Frerichs' commitment to the education of Illinois children and the financial well-being of their families.
