Iowa Educational Savings Plans Trust

Saving 101

The value of a degree.

We know the price of a degree is rising, but with payoffs like better jobs and higher income potential, research tells us it’s still worth it. Plus, with a 529 plan like College Savings Iowa, the opportunities go beyond the traditional post-secondary path. For example, your student can learn a trade, become an apprentice, earn a two-year degree and more with the money you put aside for them.

Saving vs. Borrowing

When it comes to paying for your students' education, saving now is usually more cost-efficient than borrowing later. In fact, without the benefits of compounding, waiting to borrow money when your student reaches higher-education age could cost you hundreds, if not thousands of dollars.

Benefits of Saving

It Pays to Stay in School

A study from the U.S. Bureau of Labor Statistics shows us higher education can lead to the potential of higher earnings.

This chart shows a direct correlation between higher education levels and higher average annual earnings. A worker with a high school diploma earns $853 per week. A worker with some college education, but no degree, earns $935 per week. A worker with an associate's degree earns $1,005 per week. A worker with a bachelor's degree earns $1,432 per week. A worker with a master's degree earns $1,661 per week. A worker with a doctorate earns $2,083 per week.

Trade and Apprenticeship Highlight

College Savings Iowa 529 funds can be used to pay for tuition, room and board, books and supplies at any eligible institution, including those offering trades. While apprenticeships don’t typically involve a tuition bill, there can be fees, books, supplies and required equipment. These are considered qualified withdrawals if used for participation in a certified apprenticeship program.

It’s no secret our world is advancing, and the need for employees with these backgrounds is increasing to cover our society’s needs. For example, electricians in the U.S. are expected to grow about 7% over the next decade, and that is only expected to increase as we shift to renewable energy and need to update electrical systems.

The significance of your savings is as significant as the role trade and apprenticeship programs have on meeting our growing needs.

Start today

© 2024 Iowa Educational Savings Plans Trust. All rights reserved.