Backer announces Invest Now, Pay Later offer for 529 days
Community savings platform launches Backer Boost to help Americans jump-start kids’ college funds and enjoy compound growth, even as BNPL bills and inflation squeeze budgets
SAN FRANCISCO, May 27, 2022 /PRNewswire-PRWeb/ — Research shows that children with savings for college between $1 and $500 are three times more likely to enroll in college and four times more likely to graduate, but many Americans cannot earn or save enough to comfortably invest in their children’s education. This struggle is what led Funder to build a social savings platform that democratizes access to 529 Plans, the dual tax-benefit savings vehicle long used by the wealthiest Americans to ease the burden of saving for college.
“Priorising long-term goals like college savings was a challenge for people before inflation hit the prices of gasoline, groceries and other essentials; the Fed increased the interest in lending products; and Buy Now, Pay Later (BNPL) invoices from products like Affirm, AfterPay and Klarna have started to come due,” said Jordan Lee, founder and CEO of Backer. “These rapid market changes inspired us to create a program that uses the Buy Now, Pay Later mechanism to promote healthier financial habits: it allows people to immediately experience the growth of a larger investment and to get into the habit of investing regularly for an important long-term goal.”
On National 529 Day (May 29), Funder launches 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 prevent parents from saving for college, it will have a significant impact on generations of students — not just how much they incur in debt, but whether or not they attend. That’s why Backer lets people 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 30the Backer will “boost” his account by $529. Over time, the client’s regular contributions will cover the boost, and at the end of the boost period, Backer will pay into the client’s Backer account all the extra money they would have earned had they invested $529 first day. There’s no credit check, no additional fees, 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 in those contributions.
“Saving for your child’s education can be very difficult, especially when you check your fund and all you can see is how far you have to go before you can cover even a semester of university,” Lee said. “Backer Boost is an easy way to kick-start your child’s fund, build a strong savings habit, and inspire your 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 savings for the education of the next generation. It simplifies saving for college, helping modern families not only access tax-free accounts, but also invite family, friends and extended networks to support their children’s dreams of college. a bright and burden-free future. Backer is headquartered in San Francisco, California. Visit backer.com or follow us on Twitter (@backer529) for more information.
Tisha FerraroBacker, 775-848-8231, [email protected]