Letter from Treasurer Ma

May - June 2019

Dear friends,

The benefits of higher education are well established. A person’s social mobility and economic potential are enhanced by education. And so is California’s prosperity, which hinges on expanding our educated workforce to meet anticipated future job growth.

Sadly, as tuition rates spiral upward and student loan debts soar to an all-time high, families can feel stuck with few options.

In this issue of the newsletter I want to promote a tried and true option that always works–saving. Starting to save early for a child’s attendance at a trade school or college makes sound financial sense, especially when what you earn is tax free.

I bet you’ll be surprised by how affordable, easy and simple it is to set up such a savings account with California’s ScholarShare 529 college savings plan, which I oversee as State Treasurer. And I bet you’ll also be pleased by the results.

Here’s an example. Let’s say your child is 5 years old and you anticipate that by the time she turns 18 she will enroll in a two-year community college. If you made a $25 deposit today to open a ScholarShare 529 account and contributed just $10 a week, by the time she entered that community college she will have saved about $10,000.

You can see for yourself how savings add up under various scenarios by exploring our planning tool calculator at https://www.scholarshare529.com/tools/add/.

It takes only about 15 minutes to set up an account and you can do it with as little as $25. If you act between May 28 and May 31, you reap an additional benefit -- a special $50 match when you enroll with an initial $50 deposit. (Go to http://www.scholarshare529.com/529day for more details.)

I hope you take advantage of the information presented here about ScholarShare 529, which strengthens our state and families through education.

In Peace & Friendship,

Fiona Ma, CPA
California State Treasurer