The community-savings platform launches Backer Boost to help Americans kickstart kids' college funds and benefit from compound growth, even as BNPL bills and inflation tighten budgets
SAN FRANCISCO, May 27, 2022 /PRNewswire-PRWeb/ -- Research shows that children with college savings between $1 and $500 are three times more likely to enroll in college and four times more likely to graduate, but many Americans can't make or save enough to comfortably invest in their kids' education. That struggle is what led Backer to build a social savings platform that democratizes access to 529 plans, the double-tax-advantaged savings vehicle long utilized by wealthier Americans to lessen the burden of saving for college.
"Prioritizing long-term goals like college savings was a challenge for people before inflation hit prices for gas, groceries, and other essentials; the Fed increased interest on lending products; and Buy Now, Pay Later (BNPL) bills from products like Affirm, AfterPay, and Klarna started coming due," said Jordan Lee, founder and CEO of Backer. "These rapid changes in the market have inspired us to create a program that uses the Buy Now, Pay Later mechanic to promote healthier financial habits: it lets people immediately experience the growth of a more sizable investment, and get in the habit of investing regularly for an important long-term goal."
In celebration of National 529 Day (May 29), Backer is launching Backer Boost, an Invest Now, Pay Later offering that gives every family the opportunity to benefit from the power of compound growth. If current market conditions inhibit parents from saving for college, it will have a material impact on generations of college students ? not only on their eventual debt load, but also on whether or not they attend. That's why Backer is allowing people to Invest Now, Pay Later so they can get a head start on saving for college and learn how to invest for the long term.
How it works
For new customers who open a Backer account and set up a monthly contribution of $25 or more between May 29 and June 30, Backer will "boost" their account by $529. Over time, the customer's regular contributions will cover the boost, and at the end of the boost period Backer will contribute into the customer's Backer account all of the extra money they would have earned if they had invested $529 on day 1. There's no credit check, no extra fee, and no catch ? it's all included as part of the Backer membership. Backer members can cancel the boost at any time and keep their monthly contributions and any growth from those contributions.
"Saving for your kid's education can be really hard, especially when you check in on your fund and all you can see is how far you have to go before you can cover even a semester of college," said Lee. "Backer Boost is an easy way to kickstart your kid's fund, build a strong savings habit, and inspire family and friends to help you save more."
To learn more about Backer Boost and its terms, visit backer.com.
Backer is the 529 platform creating a new era of community-saving for the next generation's education. It makes saving for college simple, helping modern families not only tap into tax-free accounts but also invite family, friends, and extended networks to support their kids' dreams of a bright, unburdened future. Backer is headquartered in San Francisco, CA. Visit backer.com or follow us on Twitter (@backer529) for more information.
Tisha Ferraro, Backer, 775-848-8231, [email protected]
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