Your child has just aged out of daycare and is going into grade school. Allocate those daycare dollars towards a 529 savings plan now that you aren’t spending on monthly daycare fees.
Graduating daycare is more than a milestone—it’s an opportunity.
The day you’ve dreamed of and, let’s be honest, slightly dreaded is finally here—your child is starting grade school.
As your son or daughter is taking a big step into some of the most formative years of his or her life, you’re likely starting a new chapter in your finances. With Wichita daycare costs averaging between $800 and $1,200 a month (Source: Winnie), starting grade school can feel like a huge financial relief for parents. That’s roughly $10,000 per year that you’re free to spend however you’ve dreamed. The question is—what is the dream?
For many parents, it’s mapping out a plan for their child’s future.
Invest in their potential with a 529 Savings Account
Shifting daycare tuition costs to an education savings account has the potential to make a long-term impact on your students’ future. A 529 Education Savings Account is a tax-advantaged investment tool designed to help parents save for future education expenses. A Learning Quest 529 Education Savings Program, administered by the Kansas State Treasurer Steven Johnson, is a smart option.
There are many benefits to a Learning Quest 529 Education Savings Account, including tax advantages. The state and federal tax advantages help keep more of your money in your pocket. These benefits include:
- Tax-Deferred Growth: Contributions grow free of federal and state income taxes while in the account.
- Tax-Free 529 Withdrawals: No income tax is paid on the growth of your account when withdrawals are used for qualified expenses.
The earnings portion of non-qualified withdrawals is subject to federal and state income taxes and a 10% federal penalty.
- State Tax Deduction: Contributions can be deducted from your taxable income.
In addition to the tax advantages, your savings can benefit from compound returns. When you start investing in a 529 Savings Account early, your investment has the potential to grow faster over time.
Give your student flexibility with their finances
The details of your child’s future are still unknown—and that’s okay! In fact, a 529 Savings Account plans for the uncertainty of your child’s path. Flexibility is one of the greatest benefits of a savings plan. Funds can be used at qualifying institutions, including:
- 2- or 4-year colleges and universities
- Vocational and trade schools
- Graduate schools
- Some K–12 tuition
So, whether your student chooses to stay home or go far, attend a traditional university or take their own journey, your savings are still valuable—ultimately providing more flexibility in their future and potentially reducing your student’s reliance on student loans.
Daycare may be over, but your child’s future is just beginning. Discover more about Learning Quest 529 plans here.
Disclosure:
Before investing, carefully consider the plan’s investment objectives, risks,
charges and expenses. This information and more about the plan can be found in the Learning Quest Handbook, available by contacting American Century
Investment Services, Inc., Distributor, at 1-800-579-2203, and should be read
carefully before investing. If you are not a Kansas taxpayer, consider before investing whether provides its taxpayers with state tax and other benefits not available through this plan.
The availability of tax or other state benefits (such as financial aid, scholarship funds and protection from creditors) may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors.
As with any investment, it is possible to lose money by investing in this plan. The value of your Learning Quest account may fluctuate, and it is possible for the value of your account to be less than the amount you invested.
This information is for educational purposes only and is not intended as tax advice.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
Notice: Accounts established under Learning Quest and their earnings are neither insured nor guaranteed by the state of Kansas, the Kansas State Treasurer or America Century Investments.
Administered by the Kansas State Treasurer, Steven Johnson.
Managed by American Century Investment Management, Inc.
©2025 American Century Proprietary Holdings, Inc. All rights reserved.
