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Nineteen thousand dollars is a number that gets my
attention. It is also the difference in the amount of money
the average Alabama worker with a college degree earns in a
year ($41,000) compared with the average Alabamian with just
a high school diploma ($22,000).
Not only do college graduates have more earning power than
high school graduates, they have more money to spend in the
economy, which helps our retailers. They also pay more money
in state income tax which helps our school systems.
Statistics show college graduates are more likely to vote,
and participate in community civic activities and
philanthropy. They also are more likely to have health
insurance than a high school graduate. These are all reasons
why we should encourage Alabama’s youth to make earning a
college degree a personal goal.
But even more importantly, a college degree, whether it is a
two-year technical degree or a four-year university degree,
will be essential for today’s children to compete for jobs
in the global economy in which we live. I firmly believe the
greatest engine for Alabama’s future is an educated and
trained workforce. This requires Alabamians to take action
today and make saving for college a family priority.
The state treasury administers two college savings programs
– the Alabama Higher Education 529 Fund and the
Prepaid
Affordable College Tuition (PACT) Program. Both programs
offer parents state and federal tax advantages to help
parents and grandparents save for college. Having two
programs allows investors to choose the investment option
that best meets their financial situation.
I tell parents and grandparents all the time that saving for
college is more than an investment in a child’s college
education – it’s an investment in their dreams. It is also
an investment in the future economic growth of Alabama.
You may not be able to save the full four-year price tag of
a college education in one year. You may not even be able to
save the full amount by the time your child goes to college.
Any savings you can accumulate, however, will go a long way
toward helping your child achieve the dream of earning a
college degree.
I am glad you are taking the first step by visiting this
website. If you have any questions about college savings,
please contact my office.
Sincerely,
 Kay Ivey
State Treasurer
www.treasury.alabama.gov |
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State Treasurer
