The attainment of a college education is still a dream for many Tennessee families.  What level of education do you want your child to attain?  For most families, that answer is a college education or beyond.  A college education increases the earnings capacity over a person’s lifetime.

Saving for college ensures that your family is financially prepared when your child is ready to go off to college. Did you know that, according to the College Board, the average tuition and fees for an in-state student at a four-year public university increased almost 8 percent for the 2010-2011 academic year alone? That statistic clearly shows the importance of beginning to save money for college expenses while children are still young. And the Cash4College program is designed to give people an incentive to do that.

Named after the section of the Internal Revenue Code that created the plans, 529 plans are tax-advantaged college savings programs.  Much like 401(k) plans are tools for retirement savings, 529 Plans are vehicles to help families save to cover the cost of future higher education costs.  Families are encouraged to start saving for college when children are very young to ensure that they reach their college savings goals. 

Money saved in a 529 Plan grows tax-deferred, and withdrawals for qualified higher education costs (tuition and fees, books, room and board and equipment or supplies required for attendance or enrollment at eligible educational institutions) are tax-free.