KANSAS CITY, Mo. — During the 2020-2021 school year, American families spent more than $26,000 on their children’s college education.

May 29th was National College Savings Day, and George Williams, the Founder & President of Williams Financial Group joined us to discuss how parents can save some money.

Williams discussed a 529 Plan, which is a plan that grows tax-free and can be used at any time for education expenses, including private school tuition for grades K-12 and college tuition.

“Because of the SECURE Act in 2019, you’re also able to use that money for trade schools, apprenticeships, and $10,000 to pay back student loans,” Williams said.

There are two different types of 529 Plans. One is a savings plan, where the person in control of the account contributes money, and then the account holder chooses which mutual funds to invest the money in.

The other type of 529 Plan is a Prepaid Tuition Plan, which allows you to lock in your child’s tuition at the current rate if they aren’t going to college for a couple years.

The Williams Financial Group offers both. For more information on them, click here. 

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