Do you want to save money for your child’s educational needs, but need help learning where to start? Well, let me introduce you to 529 plans; an educational savings plan designed to provide a parent, grandparent, or anyone else an opportunity to contribute to a child’s educational dreams using a tax-advantaged savings vehicle. Today, it is known as a “Qualified Tuition Program” or QTP. In 1996, the 529 plan was created by the United States Congress and has been modified by various pieces of legislation through the years. The reason it exists is to give people a financially attractive way to save for kids’ post-secondary education.

While this may sound too good to be true, it is not! Arizona Treasurer Kimberly Yee administers the AZ529, Arizona’s Education Savings Plan, which is one of the most diversified 529 programs in the country, providing many benefits. For example, you and your family can start saving with as little as $15 with no monthly contribution requirement, depending on which plan provider you choose. In Arizona, the contributions are tax deductible, and the interest gained is tax free! It’s literally free money for kids’ education! You can use these funds for tuition and fees at most accredited private or public universities, community colleges, trade schools, or apprenticeship programs in the United States.

Now that you know the benefits of 529 plans, how can you get started on this journey? Use the website www.az529.gov, where you can review the investment options within the AZ529 Plan. Each financial institution that offers 529 plans has customer representatives available to answer your questions and explain in more detail.

Is there a way for a child to win money that goes directly to their 529 plan? Absolutely! Every year, Treasurer Yee and the AZ529 Plan has three contests open to all Arizona K–12th grade students for a chance to win $529 towards an AZ529 Plan. Look for an essay contest coming up this fall, an art contest in the spring and a photo contest next summer!

This year, I am happily one of the winners of the AZ529 “My Picture- Perfect Career” Photo Contest, and I am grateful to say that they will invest in my future by contributing $529 to my existing plan. To enter, you had to take a picture depicting yourself in your dream job. Of all the entries submitted, 10 are selected to win $529 for educational purposes.

If you already have a 529 plan, they will deposit it directly into your account. If you don’t, they will direct you to where you can open one and deposit the money into the account once it’s open.

What a wonderful gift. Thank you AZ529, Arizona’s Education Savings Plan!