With the cost of college increasing every year, new data shows more families are saving up for their children’s college education, and they’re starting to save earlier than ever before. Merrill Lynch Wealth Management data showed that over the last five years, there has been a 34% increase in contributions to 529 plans for children aged 0 to 10 years old. Additionally, more families are saving for college. Since 2019, Merrill has seen a roughly 25% increase in 529 plans opened.

What is a 529 plan?

A 529 plan is a convenient, versatile and tax-advantaged way to save and invest for a child’s or grandchild’s education. Some key benefits include:

• Tax-deferred growth on contributions

• Account owner retains full investment control and can decide how and when funds are used

• Tax-free wit

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