Building Educational Wealth: Partnering with ScholarShare 529 to Support Educational Savings
MARCH 11, 2025 - At Majestic Art Gallery, we're excited to announce our collaboration with ScholarShare 529, California's official college savings plan. This partnership provides families with accessible tools to build educational wealth for their children's futures. Additionally, programs like CalKIDS offer seed deposits to newborns and eligible public school students in California, giving them a head start on their college savings.
Why Start Saving for College Early?
Investing in a child's education is more important than ever. Despite recent efforts to control costs, the expenses associated with higher education remain substantial. According to recent data, the average annual tuition and fees are:
Public Universities (In-State): Approximately $11,310 for the 2024-2025 school year.
Private Universities: Costs can vary widely, often averaging around $43,350 annually.
Community Colleges: Generally lower, but specific figures can vary based on the institution.
Vocational Schools: Costs differ based on the program and institution.
These figures highlight the need for early and effective financial planning to manage the rising costs of higher education.
What is a 529 Plan?
A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education expenses. Funds from a 529 plan can be used for qualified education expenses, including:
Tuition and fees.
Textbooks and supplies.
Computers and necessary equipment.
Room and board for students enrolled at least half-time.
These plans offer flexibility and benefits that make them a valuable tool for families aiming to support their children's educational aspirations.
Benefits of Opening a 529 Plan with ScholarShare 529
Opening a 529 plan with ScholarShare 529 offers several advantages:
Tax Benefits: Contributions grow tax-deferred, and withdrawals for qualified education expenses are tax-free.
Flexible Use of Funds: Savings can be used for various education-related expenses, including tuition, fees, books, supplies, and certain room and board costs.
High Contribution Limits: Families can contribute significant amounts, allowing for substantial growth over time.
Professional Management: Funds are managed by investment professionals, reducing the burden on individual families to oversee investments.
Understanding CalKIDS Seed Deposits
The CalKIDS program is designed to jumpstart college savings for California children:
Automatic Enrollment: Newborns and eligible public school students are automatically enrolled, ensuring broad participation.
Seed Deposits: Each participant receives an initial deposit into their CalKIDS account, providing a foundation for future educational expenses.
Additional Incentives: Families may have opportunities to receive matching contributions or other incentives to encourage ongoing savings.
Easy Access: Families can monitor and manage their CalKIDS accounts through an online portal, making it simple to stay informed and engaged.
Our Shared Mission: Building Educational Wealth
Our collaboration with ScholarShare 529 aligns with Majestic Art Gallery's mission to support youth and families through education and the arts. By providing resources and opportunities for financial literacy, our mission is to inspire new generations to pursue higher education and achieve their dreams.
Upcoming Financial Literacy Webinars
To further support our community, we will be scheduling webinars focused on financial literacy, covering topics such as:
Understanding 529 plans and their benefits.
Effective strategies for saving for college.
Navigating financial aid and scholarships.
These sessions will be available in both English and Spanish to accommodate our diverse community.
Register early and stay tuned for more information on dates and times. We encourage all families to participate and take advantage of these valuable resources.
