April marks Financial Literacy Month, a Perfect Time to Open a Michigan Education Trust Prepaid Tuition Savings Program

The adage that what goes up must come down does not usually apply to costs, especially when it involves saving for college.

Ask any parent who has struggled with trying to fund a college education for their child and they will probably tell you that their mistake was not planning ahead.

In recognition of Gov. Gretchen Whitmer proclaiming April as Financial Literacy Month in Michigan, the Michigan Education Trust (MET) is encouraging families to take the next step in securing their child's educational future by opening a MET, a 529 prepaid tuition savings program administered by the Michigan Department of Treasury that allows you to pay for future higher education at today's prices.

"Financial Literacy Month is an important reminder that knowledge is power - especially when it comes to planning for education," said Megan Patino, executive director of MET. "By understanding tools like 529 plans, families can take control of their financial futures and invest in long-term success for their children. That is a big part of financial literacy and why it is important."

A MET offers many advantages for saving for college:

• Tax benefits - Contributions may be deductible from Michigan state income tax and withdrawals for qualified education expenses are tax-free.
• Flexibility - Contracts can be used at in-state and out-of-state schools, as well as for community colleges and technical programs.
• Year-round contributions - Parents, grandparents, friends and community organizations can contribute anytime.

And a MET can be started for just $25.

Kent Ballard, financial adviser with Ballard Wealth Group in East Lansing, said the flexibility of 529 plans and their return on investment are a great opportunity for families.

"When you consider the current costs of college and how those costs will continue to increase, college could be very costly in the future," Ballard said. "By starting a plan now and putting away a little money each month when your child is young, you will be giving them a tremendous educational advantage for the future."

The important thing, according to Ballard, is to be disciplined about making contributions.

"If you are deliberate about what you are doing, you can make anything happen," Ballard said. "As long as you are making regular contributions to the account, you will help pay for some part of their education. Most people are just trying to make their money go as far as it can and may not have a lot of money to put away. But even if you contribute $25 or $100 a month, in 18 years you will make a big difference for your child. Every dollar you save will have an impact."

Since its inception in 1988, MET has helped more than 105,000 students by providing a reliable way to save for future education expenses. Over its 38-year history, MET has come to be recognized as one of the more successful prepaid tuition savings programs in the nation.

Families interested in opening a MET or learning more about the program can visit MET's website.

About MET

MET is Michigan's Section 529 prepaid tuition savings program that allows the purchase of future tuition at today's rates. The total contract price is eligible for a state tax deduction and earnings are tax-exempt if used for qualified higher education expenses. MET funds can also be used to pay out-of-state and Michigan private college and university tuition, and credits can also be transferred to other eligible family members.