As parents, grandparents and students we know college is coming and that we're somehow going to have to pay for it someday. Fortunately we have many options available to us including savings bonds, the stock market and 529 plans. Starting a 529 account now is always the best option, no matter how old you (or your child) is. While playing the stock market may yield higher returns on your investment, placing your money into a 529 plan allows it to grow in a tax free environment. One study even found that when the federal tax benefits were taken into consideration, 529 plans outperformed their benchmarks in every category.
Colleges and universities across the United States experienced increased operating costs of 2.5% in 2019. This most recent inflation figure was down slightly from the 2.9 percent increase in 2018 and 3.4 percent increase in 2017. These costs are forwarded directly to students in the form of higher tuition and living expenses. As these costs steadily rise every year, parents are looking for ways to help offset these future higher education costs.
These rising costs are hitting closer to home in Wyoming as well. Wyoming's' higher education costs rose by 25% in just the last 10 years, ranking as the 39th highest state.
The table below shows the average one-year costs in 2020 for different types of WY colleges and universities.
|Ownership||Degree||Schools||Public Out-of-State Tuition||Public In-State Tuition||Median Debt||Total Annual In-State Cost|
These costs rise every year. Rising tuition is a major driver in these increased higher education costs. Tuition at a 4-year university in WY rose 20% (ranked 16th worst in the US), while a 2-year or trade school increased their tuition by 54 percent.
Wyoming offers tax benefits and deductions when savings are put into your child's 529 savings plan.
|For single filers:||None|
|For joint filers:||None|
Unfortunately Wyoming does not offer any state-sanctioned 529 college savings plans.