A Message from State Treasurer Michael Fitzgerald

DES MOINES, IA (09/13/2011)(readMedia)-- "Sometimes the questions are complicated and the answers are simple."

- Dr. Seuss

For families already busy juggling the demands of work and home life, college planning might seem like the last thing to worry about. However, with the cost of a college education rising faster than inflation, nearly every family will face the problem of how to pay for it when the time comes. Thankfully, the answer is quite simple – start saving today. By starting early, saving regularly and making smart investment choices, families can make their savings work for them – and College Savings Iowa is here to help.

A study conducted by the Center for Social Development at Washington University in St. Louis found that children who have money saved for school are almost four times more likely to attend a four-year college than those with no account, partly because of the message it sends to them about the educational expectations of their family. Additional findings show that children who played an active roll in saving for their own college education may set even higher academic expectations for themselves.* This alone may make saving ahead of time one of the most significant things families can do to help make college a reality for their children.

Saving early may also reduce the need for borrowing to cover educational expenses, which can help families – and their children – get through college with less debt. If you jumpstart your savings, even an investment as low as $100 a month will pay off in the end. Think about it – putting away just that amount each month for 18 years will give you a savings of $21,600. If invested in a tax-advantaged 529 college savings account that sum could grow to a substantial amount.

College Savings Iowa, administered by the State Treasurer's Office, is a budget-friendly 529 plan that offers multiple investment choices, as well as significant federal and state tax benefits to help families grown their savings even more. Account assets can be used to pay for qualified higher education expenses at any eligible college, university, community college or accredited technical training school in the United States or abroad. Iowa sweetens the deal for investors by allowing state taxpayers to deduct up to $2,865 in contributions per beneficiary account from their 2011 adjusted gross income.**

As a way to help families start saving, we are celebrating College Savings Month throughout September and giving away a $1,000 College Savings Iowa account. For more information and to enter the giveaway, please visit www.my529iowaplan.com anytime during the month of September.

Don't forget...saving for college is an investment for a lifetime – opening the door to a world of opportunity for the children in your life. Start saving today and help make college a reality for them – you'll be glad you did! For more information about College Savings Iowa, visit www.my529iowaplan.com or call 888-672.9116.

*From the Center for Social Development study: The Role of Savings and Wealth in Reducing "Wilt" between Expectations and College Attendance. William Elliott III and Sondra Beverly, 2010.

**Adjusted annually for inflation. If withdrawals are not qualified, the deductions must be added back to Iowa taxable income. The earnings portion of nonqualified withdrawals may be subject to federal income tax and a 10% federal penalty tax, as well as state and local income taxes. The availability of tax or other benefits may be contingent on meeting other requirements.

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Investment returns are not guaranteed and you could lose money by investing in the plan. Participants assume all investment risks as well as responsibility for any federal and state tax consequences. If you are not an Iowa taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

For more information about the College Savings Iowa 529 Plan, call 888-672-9116 or visit www.collegesavingsiowa.com to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing.