In celebration of our 35th anniversary, Ohio 529, CollegeAdvantage, has asked longtime account owners from across the state, and across the generations, to share their families’ Success Story and how the Ohio Tuition Trust Authority helped them achieve their goals. We are fortunate to have these encouraging stories of how families prioritized their children’s higher education and are sharing them again. If you would like to share your Success Story, please contact Amy Lyle, Communication Coordinator, at alyle@collegeadvantage.com.
Education has always been a cornerstone of our lives. Both my wife and I are college educated, and we understand the value of a good education. However, our paths to obtaining our degrees were not easy. We self-funded our education through a combination of full-time work, partial scholarships, and a significant amount of student loans. These experiences shaped our perspectives on the importance of financial planning for education. When our son, Graham, was born, we were determined to set him up for future success, regardless of whether he chose a career in the trades or pursued a traditional college education. We wanted to ensure that he would not face the same financial burdens and struggles that we had encountered.
After conducting thorough research, we discovered that Ohio offered a 529 account, which provided tax advantages on both our income and the growth of the savings itself. This discovery was a game-changer for us. The Ohio CollegeAdvantage 529 plan quickly emerged as the best fit for our family. It allowed us to open an account with a mere $25 and contribute at our own pace. This flexibility was crucial for us, as it meant we could start saving without feeling overwhelmed by financial pressure.
We began by funding the account with $20 from each of our paychecks. This modest amount was manageable and did not require us to make significant sacrifices. Additionally, we decided to add lump-sum payments from birthdays, holidays, and other gifts to our son. These contributions, though small, began to accumulate over time. Before we knew it, the account principal was growing by leaps and bounds, all without any significant effort or sacrifice on our part.
One of the most rewarding aspects of our journey with the Ohio CollegeAdvantage 529 plan has been watching the growth of our savings. Over the past few years, we have witnessed the stock market grow by double digits, which has compounded our savings exponentially. This growth has reinforced our belief in the importance of starting early and contributing consistently, no matter how small the amounts may seem.
Our positive experience with the Ohio CollegeAdvantage 529 plan has inspired us to share our story with friends, family, and coworkers. We have encouraged them to take full advantage of this program, emphasizing that saving for the future does not have to be painful or require significant sacrifices. The key is to contribute small amounts on a biweekly, monthly, or even annual basis, depending on what works best for each individual’s situation. The Ohio CollegeAdvantage program’s website makes it easy, secure, and quick to manage contributions and track the growth of the savings.
One of the most significant benefits of the Ohio CollegeAdvantage 529 plan is the tax advantages it offers. Contributions to the plan are tax-deductible on our state income tax return, which provides immediate financial relief. Additionally, the earnings on the investments grow tax-free, and withdrawals for qualified education expenses are also tax-free. This triple tax advantage has made a substantial difference in our ability to save for Graham’s future education.
Another advantage of the Ohio CollegeAdvantage 529 plan is the flexibility it offers. The funds can be used for a wide range of educational expenses, including tuition, fees, books, supplies, and even room and board. This flexibility ensures that Graham will have the financial support he needs, regardless of the educational path he chooses. Whether he decides to attend a traditional four-year college, a community college, or a vocational school, the funds will be there to support his dreams and aspirations.
As we continue to contribute to Graham’s 529 account, we feel a sense of pride and accomplishment. We are not only securing his future but also teaching him the importance of financial planning and responsibility. We hope that our efforts will inspire him to value education and to understand the sacrifices we have made to ensure his success.
In conclusion, our journey with the Ohio CollegeAdvantage 529 plan has been incredibly rewarding. It has provided us with a practical and manageable way to save for our son’s future education. The tax advantages, flexibility, and ease of use have made it an invaluable tool in our financial planning. We are grateful for the opportunity to set Graham up for success and to share our positive experience with others. Saving for the future does not have to be daunting or painful; with the right tools and a consistent approach, it is possible to build a bright and secure future for our children.
So, if you are a parent or guardian looking to secure your child’s future, we encourage you to explore the Ohio CollegeAdvantage 529 plan. Start small, contribute consistently, and watch your savings grow. Your child’s future is worth every effort, and with the right planning, you can make their dreams a reality.
Patrick Burke and Julie Baglione
Painesville Township
Disclaimer: Patrick Burke is the winner of the 2024 Columbus Blue Jackets College Savings Assist sweepstakes, which was sponsored by Ohio 529.
