RICHMOND, Va. (WWBT) - A new study by investment research company Morningstar found many families wait to open a 529 college savings account for children who are just over 7 years old.
That leaves only about a decade for families to save and for that money to grow.
The researchers say it also means families are missing out on the maximum benefits from the accounts.
The longer money sits in a 529-- the more it has a chance to grow.
Money in the accounts like this grow tax free, and is tax free when withdrawn and spent on eligible expenses like tuition, fees, housing, meal plans, books and equipment.
Starting just one year earlier can make a significant difference, according Morningstar's research.
We're talking several more thousand dollars saved for use in college.
Just something to think about if you want to create one of these accounts.
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