I Checked CHET Out
This post was sponsored on behalf of Connecticut Higher Education Trust (CHET). All opinions and photos are my own.
Want to feel old? Think for a second about how many years it will be until your oldest kid goes to college. In my case, the answer is ELEVEN. ELEVEN YEARS. That is less time than I have been married, less time than it’s been since I graduated from college, and WAY less time than it’s been since I myself was 18 and headed off to college. Along with feeling really old, the thought of sending my kids to college fills me with fear and dread. Do you know what college costs? I don’t. I know the answer is somewhere between “a lot” and “an amount you will never be able to afford by the time it is your turn to pay for it”. The average cost for a 4-year private college in New England is more than $52,000. I have three (and a half) kids. This is the part where I usually throw my hands up and turn on HGTV and think relaxing thoughts about renovating my backyard to include a fire pit and a water feature. These tiny homework-doers can just stay small and live with me forever.
But denial is not a good way to stop things from happening (see also: birth, child vomit, lactose intolerance) and these kids are getting older and smarter by the day. Making a plan is the only real option, so I finally sat down at my computer with my Important Papers file and looked at the Connecticut Higher Education Trust website.
Here are the quick facts about CHET:
- The Connecticut Higher Education Trust (CHET) is Connecticut’s 529 college savings plan.
- CHET works like a Roth Retirement account, your contributions grow tax-free along the way, and are tax-free when you use the money for college.
- PLUS for CT taxpayers there is a CT state tax deduction on the contributions you make to CHET each year, up to $10K for joint filers and $5K for single filers.
- Money saved with CHET can be used at accredited colleges or universities in the country as well as some abroad.
- CHET funds can be used for wide variety of college costs, tuition, room & board, computer, any supplies required by the school, etc.
- If you don’t use the savings (for example, if your child gets a scholarship) you can roll the money to another child.
And here’s how it actually worked out:
I went to the site and clicked on “Open an Account”. They asked for my social security number and info, then Evan’s social security numbers and info. I entered our banking information so I could make the required opening contribution (it’s only $25) directly, then chose which investments I wanted to put the money in.
This was the part where I normally get stressed and run away, because I am not a financial guru or investment specialist. I am a person who has definitely HEARD the word “index fund” before but can’t quite remember where. There is a ton of information about each option on the website and there are actual humans you can call and talk to if you want, but my eyes and brain quickly start blurring when I feel overwhelmed by the choices. I ended up reading some of the advice, showing the options to E, and then just picking something, because a fear of choosing the wrong option 11 years before he goes to college shouldn’t stop me from investing in Evan’s future. There was an option to set up reoccurring contributions with lots of flexibility, but you don’t HAVE to. It asked me to agree to the risks and terms, asked me to set up a username and password for managing my account, then I was done. Repeating the process for each of my other children took less than 2 minutes, since they were all under my same account and the info was saved.
After I set them all up, I sent my mom an email for each account with an easy link so she can make contributions herself, either online or by mail. You can send them to anyone in your address book on special occasions (birthdays, holidays, etc) or “just because”. I think she was probably ready to just set up the accounts on her own (you can do that! you don’t have to be the parent, so if you have grandkids or nieces or nephews who you think need a 529 absolutely look into it!) but now I am done and she can rest easy.
Right now, CHET is running a contest in honor of 5/29 day (May 29th). One winner will win a $1,529 contribution to their account and two runners up will win $529 contributions. Free money?? YES PLEASE. You can check it out and enter easily here.
ALSO. If you had a baby in the last year (or you happen to be having one soon), CHET has an amazing Baby Scholars program, where they will give you up to $250 for free just for putting money in your kid’s 529. It’s not a complicated, convoluting system either – you put money in, they add money. I am kicking myself SO HARD that I didn’t do that for Lincoln before it was too late.
I feel like that was a LOT of words to talk about something that seems really boring, but it’s one of those things that’s been on my to-do list literally for years and I am so glad I can finally cross it off. Give yourself an A+ in adulting today and check CHET out.