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Reading can help children prepare for a bright future, but it can also help some parents finance their education through a partnership between state public libraries and the Kentucky Education Savings Plan Trust (KESPT). .
Eight state youth, including Josiah Houk of Owensboro, received an additional $ 1,000 in an education savings plan after being randomly selected for their participation in the Rock, Read and Save for Middle School. During the summer, children like Houk, who participated in summer reading programs, such as the one at the Daviess County Public Library, were lucky enough to win a dance plan. 39; savings.
A $ 1,000 prize can be a good start for a college fund, but the education savings plan is not like money is plugged into a piggy bank. Along with a college retirement fund, the Kentucky 529 Education Savings Plans are invested and remain tax free as long as they are used for educational purposes.
David Lawhorn, head of the KESPT program, said that Kentucky was managing the funds through a private investment company, just like other states, to give parents Commonwealth a preferred option to finance their studies.
"The primary goal of trust is to provide educational and awareness opportunities," Lawhorn said. "With the 529 savings plan, the goal is for families to start thinking about their education needs in the future."
Beginning this year, the government approved policy changes that also allowed the use of $ 10,000 for plans to be used for elementary or secondary education.
Lawhorn said the 529 plans were advantageous over other financial plans such as certificates of deposit, savings accounts or mutual funds because the savings plans guaranteed by the company were not guaranteed. State are not calculated on a student's financial aid application and will not be taxed as they grow up.
Some parents may have had their fingers crossed in hopes of starting college funding, but local students seemed to be focusing on summer fun.
Ryan Henry, coordinator of programming for elementary school children, said the library has seen an increase in the number of people of all ages participating this year.
"We have seen a sharp increase in the number of teens and adults, but we have also had nearly 200 more children than last year," said Henry.
Henry said the library had 2,108 children aged 12 and under, 227 teens and 666 adults who were logging in for the summer reading program.
The kids had to read five books for the chance to win the savings plan and other prizes, like a games console, but Henry said that this year marked the beginning of a new policy according to which participants only had to read a book to receive a prize book. .
The summer reading program usually runs every year from June 1st to July 31st.
You can find more information on 529 shots on kysaves.com/.
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