Save for college.
But do it together.

Backer is a smart way to save for your kid's education with help from family and friends.

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Avg student loan in 2021:

$42,000

$50
$25
$25
$25
$25
$50

Saving alone:

You put aside $50 per month.
After 15 years, you end up with $9K: barely a dent in your savings goals.

With Backer:

You put aside $50 per month and two family and friends chip in $25 each per month; invested tax-free, you could reach $47K in 15 years.

Plus, Backer will add $10 for every new backer who supports your kid.

Talking about finances can be tricky.

Backer brings together family and friends with new ways for everyone to contribute to your kid’s future.

Hey, Dad!
I found a way to make sure Noah can go to his dream college, so cool
ha! did you rob a bank or something?
It’s called Backer. I opened a savings fund for Noah. It’s a 529 account and tax-free. We all chip in as a family for his college education, the same way you saved for retirement.
Ok, me and mom are in!

Share your personalized fund page with your backers and watch your savings grow together.

Moms, we got you.

Backer takes care of your kid’s college savings, so you can get on with raising your little ones. Listen to what busy moms say about Backer.

Backer remains free for funds with 2+ backers.

And until you’re ready to invest, every cent is insured by the FDIC for up to $250,000.

Upgrade to Backer 529 and we invest your savings in a tax-free 529 plan, for a monthly fee of $5.

With Backer 529, your savings is invested tax-free in a state-sponsored 529 savings plan, which could help you earn 9% APY.*

* We suggest a 529 plan with low fees and a strong track record, but investing has risks and your investments may lose value.

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At Backer, we believe families can build brighter futures when they start supporting each other financially.

Saving together is better, and we'll always have your back.

FAQs

Are there any state-related restrictions I need to be aware of before opening a 529 plan?

There are no state-related restrictions on opening a 529 plan and you are not limited to using a plan from your home state. If you'd like to set up a college fund, Backer can help you enroll in one of the country's best tax-free 529 savings plans.

Can I open a 529 plan without Backer?

Yes, you can open a 529 plan without Backer. You can find the list of available 529 plans here.

TLDR: What are the benefits of starting a 529 with Backer?

Backer can help you enroll in one of the country's best tax-free 529 savings plans in under 5 minutes. We remove the complexity and guesswork so you can focus on what matters: saving more for your child's education. We then help you rally family & friends to help. It only takes a few minutes to start saving for your own family or to send a gift to kickstart another family's college savings – and it’s free to start.

Is Backer FDIC-insured?

Before you invest with a 529 plan, your Backer savings is FDIC-insured up to $250,000. Most 529 plan investments are not insured by the FDIC, and our default portfolio recommendation will not be FDIC-insured. If you would prefer for your 529 account to be invested in FDIC-insured funds, please email support@backer.com and we will make the change for you.

Can I transfer my 529 plan from Backer?

Yes, you can always transfer to another 529 plan. We'll even do the paperwork for you.

Can I withdraw money from Backer in case of a personal emergency?

You can always withdraw your original contribution without penalty or additional taxes. If you use the funds for non-qualified expenses (i.e., not for education), the “earnings” portion will be subject to a 10% penalty plus income taxes – but there are a few ways to avoid or minimize this, which you can learn about here.

What alternatives to a 529 plan should I consider using to save for college?

Most experts agree that a 529 plan is the best way to save for college, but you can also save with a Roth IRA, Coverdel, or something called an UGMA/UTMA account. These taxable custodial accounts are automatically controlled by the child at age 18 or 21, cannot be transferred to anyone else, and unlike 529 plans will significantly impact your child's financial aid eligibility.

How does Backer protect my personal information?

Backer uses cutting-edge security practices to keep your sensitive financial data safe. We use the strongest available browser encryption, secure servers monitored 24/7/ 365, and identity verification services to protect your personal information. We also maintain a Business Continuity Plan that establishes protocols for responding to significant business disruptions.

Backer “advises users online about 529 investments... and lets savers share a special link that lets relatives and friends donate online.”

Backer "aims to assist parents in choosing the right plan. No sit-down with a banker required; once you figure out which plan is right for you, you can both open your account and manage it online."