Great Lakes Wire

The Michigan Department of Treasury (DOT) is reminding citizens of the state that investing in their child’s future can pay big dividends in the long run.

The average federal tax refund was $2,873 last year, according to IRS data.

Diane Brewer, Michigan Education Savings Program (MESP) administrator, said parents or guardians should consider putting their tax refund into an MESP account for their child.

"Investing your tax refund in an MESP account is a smart and easy way to help plan and save for a child's post-secondary education," Brewer said. "Even a small 'windfall' like a tax refund can help accelerate the value of a current account or help kickstart a new one." 

Sponsored by the state, the MESP is a tax-advantaged 529 college savings plan established in 2000 in order for people to save against the rising cost of higher education, according to the DOT's website.

MESP can be utilized at any eligible university or trade school to pay for an array of expenses, including tuition, room and board, and books, the DOT said. It is managed by TIAA-CREF Tuition Financing, Inc. for the department. MESP has approximately 294,000 accounts, with total assets exceeding $7.3 billion, according to the website.

The savings program has garnered silver and gold scores from Morningstar annually since 2012, and is considered one of the country’s “best state-administered 529 college savings programs over the past decade,” the DOT said.  

"Whether a child is an infant or a teen, there is no better time to start planning for the future and saving for higher education than right now," Brewer said. "And that refunded money from Uncle Sam can really help."

Those interested in learning about MESP can visit MISaves.com or call 877-861-6377.