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NAIFA is proud to celebrate National 529 College Savings Plan Day today! It's a day that holds special significance for parents, students, and guardians. The importance of a 529 College Savings Plan when it comes to financial planning should not be overlooked! 

Well what is a 529 College Savings Plan? A 529 plan is an education savings plan designed to help families set aside funds for future college costs. Named after Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions, and offer tax advantages to boost educational savings.

The great part about the 529 plan lies in its tax benefits. Earnings in a 529 plan grow federal tax-free and will not be taxed when the money is taken out to pay for college. In many states, contributors can also deduct their contributions against their state income tax.

The 529 College Savings Plan is an integral component of financial planning, particularly for those planning on getting a higher education. It encourages investments overtime that allow the returns to compound and grow into a substantial amount by the time a student is ready to attend college. 

Student loans have become a substantial financial burden for many. By planning for education expenses through a 529 plan, families can significantly reduce the need for student loans in the future, ensuring a better financial start for the next generation.