Prairie State Wire

State Treasurer Michael Frerichs marked 529 Day on May 29 by encouraging Illinois families to invest in their children's education through Bright Start 529 accounts. "When a child knows he or she has a college savings plan, that child is three times more likely to attend college," said Frerichs. He emphasized the impact of adults contributing to these accounts, stating it sends a message of belief in the child's future.

Bright Start is a 529 College Savings plan applicable at various educational institutions, including public and private schools, colleges, universities, and registered apprenticeship programs. Illinois taxpayers benefit from tax advantages when contributing to these plans. The investment grows tax-free if used for qualified expenses. Families can open accounts online or through financial advisors via the Bright Directions Advisor-Guided plan.

Frerichs noted that anyone can contribute to these accounts without enrollment fees or minimum contributions required. The "529 Day" serves as a reminder of the significance of saving for education and reducing future student loan debt.

"You can even ask other family members and friends to help plan for a young person's future," Frerichs suggested. He proposed that instead of traditional gifts, family members could contribute to a child's 529 account.

Since taking office in 2015, Frerichs has expanded the Bright Start program and reduced fees significantly. This initiative ensures more funds are directed towards savings rather than administrative costs. Additionally, Frerichs collaborated with lawmakers to introduce the Illinois First Steps program, offering a $50 seed deposit for new accounts opened for children born or adopted after January 1, 2023.

Last September saw enhancements to Bright Start 529 with lower fees and improved technology features. These changes have contributed to the growth of over 925,000 accounts holding $21 billion in assets.

The introduction of the Bright Start mobile app has further simplified account management for users by allowing easy access and contribution facilitation via smartphones.

Frerichs' efforts have been recognized with awards from Morningstar, Business Insider, and CNBC naming Bright Start as one of the top plans nationwide in early 2025. In October 2024, Morningstar awarded Bright Start a Gold rating among only five such ratings given across the country that year.

For more information on opening an account or learning about investment options within Bright Start or Bright Directions plans, interested parties are directed to visit their respective websites or contact provided phone numbers.

The Illinois State Treasurer's Office manages significant investments supporting various state needs including education funding and consumer protection initiatives like I-Cash.

Bright Start has been facilitating easier saving processes for higher education since its inception in 2000. It covers tuition-related expenses across multiple types of educational institutions domestically and internationally.