News and Events
Financial Planning and Preparation Can Help Georgia's Children Achieve Their Dreams
By Georgia State Treasurer Tommy Hills
We all want our children and grandchildren to dream big as they look toward their future. We tell them they can be whatever they want to be when they grow up. While I strongly believe that most children possess the strength, determination and perseverance to do just that, I also believe that, as parents and grandparents, it is our job to create a strong foundation to help them achieve those goals—both educationally and financially.
With my background in banking, I knew that planning and saving consistently over time was the key to creating a college fund for my two daughters. Today, with one grandchild attending college and four grandchildren quickly approaching college age, I often think about their future and the opportunities and obstacles they will have as they face ever-increasing college costs in a tough economy where saving can be a challenge.
However, despite what can seem like a daunting challenge, saving for your child’s education is possible, and taking responsibility for their financial security is the way to make their dreams affordable. That’s why I want to encourage Georgia families at this time of year to look at their financial situation and create a plan that includes saving to secure your children’s future.
While you have many choices when it comes to preparing financially for college, I am proud that Georgia now has an option that wasn’t available when I was planning for my children’s college—the Path2College 529 Plan. I’m glad such a plan is now available for my grandchildren, and that’s why my wife and I have opened Path2College 529 Plan accounts for them.
Georgia’s 529 plan is designed to be easily understood, affordable and accessible to everyone, and it doesn’t take an in-depth knowledge of financial planning to start and add to a college fund for any child in Georgia. And as tax day quickly approaches and you are looking for additional deductions, Georgia offers its taxpayers a deduction of up to a $2,000 per year, per beneficiary, regardless of your annual income, for contributions to a Path2College 529 Plan account. Contributions made before the 2011 tax deadline (April 18th) may be deducted from your 2010 Georgia income tax return, although a transfer of funds from another state’s 529 plan is not eligible for the deduction.
My hope for Georgia families is that every parent and grandparent will consider their financial options for their children’s continued education. Don’t let the expense overwhelm you, and don’t set unreachable goals that will only discourage you. Instead, find the option that is right for you, and invest consistently, a little at a time, to help offset those costs and help relieve the financial burden later. As with any financial planning that you can do, time is your most valuable asset, so the earlier you start saving, the better off you and your children are likely to be when it comes time to head to college.
I encourage Georgia parents and grandparents to visit www.Path2College529.com or call 877-424-4377 today and start setting aside the dollars your children and grandchildren will soon need for college. The sooner you begin saving—the easier it will be to meet the future costs of college.
*Please read the Disclosure Booklet for full details on the state tax deduction guidelines.
Tommy Hills is State Treasurer for Georgia. Hills previously served as the state's first Chief Financial Officer where he oversaw the operations of 24 state agencies, authorities, and commissions.
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