Want $500 for college - free?

September is College Savings Month, and you could be $500 richer for it.

It may be counterintuitive to publicly discuss family finances, but I'm going to tell you about our teenager's 529 plan. Named for a section in the Internal Revenue Code, the college savings vehicle is also known as a "qualified tuition plan" - as in qualified to enjoy annual state tax deductions (e.g., on contributions up to $4,000 if single/$8,000 if married filing jointly), as well as some federal advantages. Earnings grow tax-deferred, and if spent on education expenses, withdrawals are not taxed.

Every dollar counts more as tuition rates (and loan defaults) continue to surpass inflation, incomes, and available jobs.

Please note: I'm not talking about other kinds of savings plans offered through brokerage and investment firms; this column addresses only Idaho's state-sponsored plan, called "IDeal." To celebrate College Savings Month, their website is giving away 14 awards of $500 each to Idaho residents over 18 (awards to be deposited in an existing or new IDeal account).

Our account was easy to set up. At Idsaves.org I entered initial account information including parent (account owner can be grandparent, friend, or any adult) and child/beneficiary's names, addresses, and Social Security numbers. If you prefer mail, forms may be requested from (866) 433-2533. It takes as little as $25 ($75 per quarter) to open an IDeal account.

Next I chose how to allocate risk, from investment options ranging from conservative to aggressive. Any combination or 100 percent in any category works, but generally the closer in time to college, the more conservative the recommended approach.

After that I mailed a check to open it (electronic transfers also possible) and logged in online to confirm its receipt. We contribute twice per year, but even $25 monthly adds up quickly. Counting the trip to the mailbox, the entire process took 10 minutes.

I can check the balance anytime online and receive quarterly statements by mail. No, I don't have to watch the investments, make regular contributions, or worry about investment decisions. No, she doesn't have to go to college immediately after high school; there is no set time limit. Like other family assets, IDeal is factored into available resources when schools determine financial need, but on average only minimally, i.e. 5.64 percent of account value is typically assessed annually for the expected family contribution.

Yes, "qualified expenses" include accredited four-year, graduate, community and technical college tuition and fees anywhere in the U.S. or at U.S. campus locations abroad; as well as books, dormitory, and course-required supplies (but not paying student loans, unfortunately). If that child does not go to college, the beneficiary may be switched to another college-bound family member.

No, there is no initial fee for an IDeal account and the annual fee is negligible - less than 1 percent for Idaho residents. The maximum limit per beneficiary is $350,000; not that we'd reach that without a lottery win.

It's never too early or late to start an account. Like education itself, there is no age or income limit.

"Learning is not a product of schooling but the lifelong attempt to acquire it." - physicist Albert Einstein

Sholeh Patrick is a columnist for the Hagadone News Network. Contact her at sholeh@cdapress.com.