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By Jørn Earl Otte, Hartford Funds’ Strategic Marketing Consultant for SMART529 in West Virginia

We all intuitively know that the more education our children can obtain, the better their chances for a higher-paying career. As your loved ones’ education increases, their potential for a higher salary does as well. It is also important to note that successful careers don’t always require a college degree. Skilled labor positions can provide an excellent income. The number of those positions continues to grow. And as it does, more well-trained skilled workers will be needed to fill those positions. However, almost all of them require some post-secondary education, and that education rarely comes free.

Unfortunately, as so many Americans have discovered, the dollar figures associated with getting a degree of any type can be astronomical. Higher education costs have skyrocketed over the last several years, and there’s no indication that that trend will change. As these costs become more prohibitive, families will seek to find more ways to remove or at least reduce that financial burden.

529 programs can be a source for families to save for higher education, however there are many misconceptions about what 529s can be used for, and when and where funds can be distributed.

Let’s dispel some myths and find a few facts about 529 plans – hopefully, these will help you and your family as you seek to fund your loved one’s future education:

Other important things to consider

It’s always smart to start saving while your child is young, as even small amounts saved on a regular basis can add up over time. But don’t be dismayed if your child is in middle school or even high school. Every dollar you save for them today is a dollar they won’t have to borrow from a lender tomorrow. Unfortunately, many people think that if they can’t save everything, why save anything? Instead of having an all-or-nothing attitude about savings, adopt a “something is something” outlook. It’s still worthwhile to save something for college, no matter how little or how much. Many students graduate with heavy debt that takes decades to pay off.

Even if you can’t eliminate student loans for your children, perhaps you can lighten the debt load for them after graduation. Perhaps your investment will pay for all of their books or may even be enough to cover one, two, or even three years of college for them. You can be proud of whatever savings you accumulate knowing that every dollar makes a difference for them and for you.

About the author:

Jørn Earl Otte is Hartford Funds’ Strategic Marketing Consultant for SMART529 in West Virginia. Please note that all of this information is provided here for educational purposes only, and is not intended to provide tax, accounting, investment, or legal advice. Please consult the appropriate professional should you have any questions regarding these issues.

Before investing, an investor should consider whether the investor’s or designated beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s 529 plan.

For more information about any 529 college savings plan, contact the plan provider to obtain a Program Description, which includes investment objectives, risks, charges, expenses, and other information; read and consider it carefully before investing. Hartford Funds Distributors, LLC, serves as distributor and underwriter for some 529 plans.

As a kid, my exposure to pop culture was limited by the fact that I grew up in a rural area where our giant outdoor TV antenna picked up exactly one channel. Fortunately, that channel did deliver the Saturday morning goods by way of the Teenage Mutant Ninja Turtles and direct-to-kids advertising that was rampant through much of the late 80s and early 90s. 

My protective bubble burst in a blaze of glory in late middle school through the magic of…satellite TV [insert “mind blown” meme here]! Overnight, our household TV channel portfolio grew by nearly 19,900% from 1 to 200+ channels. It’s safe to say this was the highest-grossing investment my family will ever know (though certainly not the most rewarding one – more on that later). 

Ironically, with immediate access to countless new forms of content, I found myself drawn explicitly to the show that was literally about nothing. I mean, what’s the deal with satellite TV? I had hundreds of options, and I only wanted to watch Seinfeld reruns!

Believe it or not, despite the show’s reputation, there’s a lot one can learn from the four, arguably morally bankrupt, main characters, including why things like prepaid tuition plans might be a good choice for many families.

This was reinforced when I recently rewatched “The Stock Tip” episode, where George got a hot stock tip and talked Jerry into going in on a risky investment with him. Jerry, who was uncomfortable with market risk, agonized the entire episode as he saw the value of his holdings plummet every day until he couldn’t take it anymore and sold out at a significant loss. Sure enough, a few days later, the stock had recovered, gained exponentially, and made George a tidy profit, much to Jerry’s chagrin. 

The point that really hit home in that episode is that investment-based 529 plans, while an important source of long-term investment growth for many, are not the tool that every college saver is comfortable relying on exclusively. And that’s perfectly okay. Some families want to know they are building their college savings without the added stress of market swings. Others may be seeking a defined benefit with a known outcome. And yet others may want to diversify and not have all their eggs in one basket. 

This is where prepaid tuition plans come in. These unique and special products, only available in certain states, take much of the uncertainty out of the college savings picture. Designed to keep pace with rising tuition costs in a given state, savers in these plans not only have a hedge against long-term tuition inflation but can rest easy knowing that market timing won’t be a factor when needing to pay for college. And, despite common misperceptions, these plans often allow you to use your funds out of state and for various other higher education expenses beyond tuition, just like their investment-based 529 brethren. Keep in mind that prepaid benefits, when used for expenses beyond in-state tuition, can vary by plan. As with any financial product, it’s important to read the full disclosures before opening an account. 

Now, full disclosure here – as co-chair of CSPN’s Prepaid Tuition Committee and an administrator for a state that offered a prepaid tuition program as our sole 529 option for 20 years, I wouldn’t be very good at my job if I wasn’t trying to convince you how great prepaid plans are! But I can also personally attest to the power these products have. For my daughter, my wife and I participate in both of our state’s plans. We put our largest share of contributions into our prepaid account to lock in peace of mind and contribute additional funds to our investment-based 529 to boost our overall expected return.

Just like Seinfeld was the ideal choice among the many content options to help shape (warp?) my still-developing pre-teen mind, my family’s blended prepaid/investment strategy is the perfect balance for our college savings goals. As you consider your own education savings goals, a prepaid tuition plan may be worth a look if your state offers one, especially if you’re seeking that perfect peace of mind. In the immortal words of George’s dad, Frank Costanza: “Serenity Now!”

_____________

About the Author

Luke Minor is the Senior Director of Postsecondary Affordability at the Washington Student Achievement Council. In his role, he oversees Washington State’s Education Savings Plans (WA529), which include the GET Prepaid Tuition Program and WA529 Invest. Since 1998, tens of thousands of students have used more than $2 billion of their WA529 savings to attend colleges in all 50 states and at least 15 foreign countries. In his free time, Luke enjoys getting outside to hike, ride bikes, and even splash in a puddle or two with his wife, rambunctious five-year-old, and young-at-heart geriatric dog. And yes, he still watches Seinfeld reruns from time-to-time. 

The latest 2024 data for 529 college savings plans is in, and the numbers are impressive! With over 16.96 million accounts nationwide, 529 plans are continuing to gain traction as the go-to tool for saving for higher education. Collectively, families have saved a staggering $525 billion in these plans, with the average account size reaching $30,966. That is an 11% increase in the amount of money saved since 2023!

This strong growth demonstrates a growing awareness of the importance of saving early for education expenses. 529 plans are designed to make saving for college easier, offering tax-free benefits when used for qualified education expenses. These plans are ideal for families looking to build an education savings fund over time.

The 2024 data highlight the success of these plans and reinforces the importance of starting to save now. Whether you’re saving for a child’s education, your own, or even for a grandchild, a 529 plan offers flexibility and valuable tax advantages. Plus, it’s never too late to start—setting up an account today can help ease the financial burden of rising tuition costs.

If you haven’t already, consider taking advantage of the benefits of a 529 plan. With millions of accounts already in place and over half a trillion dollars saved, now is the perfect time to join the growing number of families investing in education for a brighter future. Start saving today, and set yourself up for success tomorrow!

About the author:

The College Savings Plans Network (CSPN) is a leading objective source of information about Section 529 college savings plans and prepaid tuition plans–popular, convenient, and tax-advantaged ways to save for college. An affiliate of the National Association of State Treasurers (NAST), CSPN brings together state officials who administer 529 savings and prepaid plans from across the country, as well as their private-sector partners, to offer convenient tools and objective, unbiased information to help families make informed decisions about saving for higher education.

By Dave Dominick, Assistant Director of Marketing and Outreach for the Pennsylvania Treasury Department

February 18, 2025

List of “must haves” for a competitive benefits package.

  1. Professional development. Check. 
  2. Flexible work-life balance. Check.
  3. On-site childcare. Check.
  4. Pet-friendly office. Check.
  5. 529 matching for my kids. *Crickets chirping*

That sound of silence is about to get loud. For years, 529 plans have been helping families steadily and strategically save and pay for education expenses. According to the College Savings Plans Network (CSPN), families had more than $508 billion tucked away in tax-advantaged 529 accounts as of June 2024. This money can help pay for a loved one to become anything from an electrician to a teacher, depending on their chosen career path. 

Though the amount in 529 plans has nearly doubled in the last decade, it is considerably less than the amount Americans have in retirement accounts. Data from the Investment Company Institute shows that retirement accounts hold more than $40 trillion. To put this into perspective, that’s roughly 7,700 times more than 529 plans. 

Outreach is Key

One of the main reasons people save more for retirement is because most companies offer various savings options to employees on day one as part of a comprehensive benefit package, many times including matching contributions. 

To make it easier to save for retirement, companies can offer 401(k) plans, individual retirement accounts (IRAs), deferred compensation plans, and more. Most often, employees set up these accounts as soon as they are hired and save steadily through automatic payroll deductions with each pay. By saving automatically, employees are less likely to miss a contribution. As the saying goes, “Slow and steady wins the race.” 

Unfortunately, according to a report by Statista, only 10 percent of companies nationally offer workplace payroll deductions for 529 education savings accounts. 

However, a growing number of employers are offering 529 plans as a voluntary benefit. Employees can pick a 529 plan and contribute using payroll deduction, and many state-sponsored 529 plans have outreach and education specialists to help both employers and employees navigate this process.  

State agencies that manage both 529 and unclaimed property programs can find it easier to connect with new businesses. Outreach teams can identify unclaimed property owed to a business and use that as a perfect reason to begin a conversation that may lead to a meaningful relationship and additional resources for employees.

Offering a Business Tax Credit

There are other beneficial reasons employers may begin offering 529 plan access in the workplace. At least eight states now have laws that provide tax credits to companies that match employee contributions to 529 plans. In Pennsylvania, the latest state to offer a business tax credit, employers can claim a 25 percent tax credit on matches to employee 529 (and ABLE) contributions of up to $500 per employee. The Pennsylvania Treasury Department’s outreach team has already formed relationships with statewide and regional chambers of commerce to help engage employers.

By promoting a state tax credit for 529 contribution matching and emphasizing improving employee benefits and workplace culture, employers can see the long-term economic and social impact their contributions can have on helping create a more educated workforce for local communities. 

An October 2024 article in the New York Times provided more examples of employers offering 529 plan matching contributions. 

Resources

A Commonwealth report noted that most employees were interested in saving in 529 plans, especially those from low—and moderate-income households. There has never been a better time to approach employers about this important opportunity. The Commonwealth report outlines these opportunities and offers suggestions and best practices for employers to use when implementing a workplace rollout of access to 529 plans. 

Many states also offer and promote Children’s Savings Account (CSA) programs like Pennsylvania’s Keystone Scholars, which provides a $100 investment for post-high school education for all babies born in Pennsylvania since 2019. Awareness of CSAs helps new parents understand the importance of saving early, starts them on their savings journey, and increases parental expectations for their child’s future.

What’s Next?

State 529 plan industry groups, like CSPN, remain engaged with lawmakers in Congress to enhance education savings accounts. Over the last ten years, 529 plans have expanded to include K-12 tuition expenses, apprenticeships, and student loan repayment as qualified expenses. 

This, in part, has spurred the popularity and growth of 529 plans nationwide. Other initiatives, such as incentives to open accounts (see 529 Day activities), matching employer contributions at the state level, and increasing access to technology to manage accounts, are steps in the right direction. 

Your company can contact your state’s 529 plan office to discuss potential outreach and learning opportunities. CSPN’s website maintains a search tool for 529 plans nationwide.   

About the author

Dave Dominick is the Assistant Director of Marketing and Outreach for the Pennsylvania Treasury Department’s Consumer Programs, which includes the Pennsylvania 529 College and Career Savings Program, Keystone Scholars, and the Pennsylvania ABLE Savings Program. He also co-chairs the ABLE Savings Plans Network’s Data and Benchmarking Committee.

By Lael M. Oldmixon, M.Ed. , is the Executive Director of the Education Trust of Alaska

February 11, 2025

My relationship with the 529 education savings industry started after the birth of my first child. I vividly remember pushing his stroller at the state fair and seeing a booth for Alaska’s education savings plan. The staff were at the fair to promote a scholarship account giveaway and educate the public about the state’s 529 program. My spouse and I strongly desired to do something but weren’t quite ready to commit to a savings tool. We were trepidatious about starting a 529 account and overwhelmed by the jargon, the risks, and frankly, by the feeling that we may be locked into something that didn’t give us flexibility and liquidity. That moment at the state fair provided us with a person to answer our questions, allay our fears, and coach us in taking the first steps to start a long engagement with 529s.

My relationship with the 529 education savings industry started after the birth of my first child. I vividly remember pushing his stroller at the state fair and seeing a booth for Alaska’s education savings plan. The staff were at the fair to promote a scholarship account giveaway and educate the public about the state’s 529 program. My spouse and I strongly desired to do something but weren’t quite ready to commit to a savings tool. We were trepidatious about starting a 529 account and overwhelmed by the jargon, the risks, and frankly, by the feeling that we may be locked into something that didn’t give us flexibility and liquidity. That moment at the state fair provided us with a person to answer our questions, allay our fears, and coach us in taking the first steps to start a long engagement with 529s. 

That was nearly 15 years ago. I am happy to report that our family’s relationship with the 529 industry has deepened and developed into a beautiful partnership. And now, with time in the rearview mirror and having learned so much more since taking the helm of Alaska 529 education savings programs, I say, “What’s NOT to love about 529s?!” 

Here’s what I love about 529s: 

  1. You can use your 529 accounts tax-free for education expenses wherever your loved one’s path takes them, including K-12 tuition, apprenticeships, vocational school, college, graduate school, loan repayment, and continuing education. 
  2. Most recently, congress added tax-free Roth IRA rollover contributions up to $35,000 if your account has been open for at least 15 years. 
  3. 529 accounts are flexible and can be used for SO many options. 
  4. Family and friends can gift education funds, which not only makes gift-giving easy but also meaningful. 
  5. With direct deposit contribution options, you can set it and forget it, making saving in a 529 something you don’t have to worry about each paycheck. 
  6. Most 529 accounts can be started with a small contribution, and many plans have incentives to encourage new accounts! 

What I love most about my 529 plan is that it offers me an opportunity to reduce the worry of debt, set my savings aspirations, and have realistic conversations with my kids about what we can afford because we saved. 

There is, indeed, a lot to love about 529 plans.

About the author:

Lael M. Oldmixon, M.Ed. , is the Executive Director of the Education Trust of Alaska, which offers Alaska’s three 529 plans, Alaska 529, the  T. Rowe Price College Savings Plan, and the  John Hancock Freedom 529. She lives in Alaska with her spouse, two children, and two dogs. 

By: South Carolina State Treasurer Curtis Loftis, Administrator of Future Scholar College Savings Plan

February 4, 2025

Chances are, if you ask a group of children what they would like to be when they grow up, you’ll get a wide variety of answers. One child wants to become a teacher. Another dreams of being a firefighter, baseball player, or both. Over the years, their answers may change many times. Whatever career path they ultimately choose to pursue, their parents and grandparents want them to have the education that will help them achieve their dreams. That’s why families often save for their child’s future with the help of a 529 plan.

As State Treasurer, I’ve had the privilege of helping thousands of families save for their children’s future education with South Carolina’s Future Scholar 529 Plan. Families appreciate that 529 plans offer the flexibility to allow their children choices. Students may opt to attend a traditional four-year university or select a much more direct path to beginning their careers.

Vocational, technical, and trade schools

In addition to the many eligible four-year public and private colleges throughout the United States and in many other countries, 529 funds can also be used at eligible vocational, technical, or trade schools. The career-focused training these schools offer allows graduates to apply for skilled trade jobs. Because academic programs at trade schools are more hands-on and practical rather than expansive and theoretical, students can often complete their coursework in half the time needed to obtain a degree from a college or university.

At trade schools, students can choose from an almost endless list of career choices and use their 529 funds for qualified programs in areas such as cosmetology, HVAC training, massage therapy, dental hygiene, plumbing, IT training, medical assistant training, electrical, criminal justice, automobile repair, carpentry, culinary school and many more.

Experts say that many Gen Z students view trade schools as a faster path to entrepreneurship. Others cite higher pay and new technology in trade professions as motivation to seek a technical education. These students aren’t alone. The National Student Clearinghouse reports that enrollment in trade schools grew 16% in 2023.

Degrees in demand

Students who choose to attend a trade school are likely to be entering a job market that needs them. A 2024 Deloitte and The Manufacturing Institute report found that U.S. manufacturing is projected to need 3.8 million new employees by 2033. Fast-growing careers include machinists, welders, semiconductor processing technicians, statisticians, data scientists, logisticians, computer and information systems managers, as well as software developers and industrial maintenance technicians.

And trade school graduates are often paid more. A 2023 ADP study, as The Wall Street Journal reported, found that the median pay for new construction employees entering the workforce rose 5.1% to $48,089. On the other hand, new professional services employees earned an annual $39,520. For the fourth year in a row, new construction hires earned more than newly hired professionals, such as accountants.

Apprenticeships

The SECURE (Setting Every Community Up for Retirement Enhancement) Act of 2019 allowed families who save with 529 plans even more flexibility. Students can now tap their 529 funds to pay for apprenticeship programs registered with the U.S. Labor Department. In addition to fees and tuition, 529 funds can be used to pay for tools and equipment, such as required computer software or hardware, welding equipment, healthcare instruments, safety gear, or construction tools needed to enroll in registered apprenticeship programs.

529 equals important flexibility

In the three decades since they were first introduced, 529 plans have become remarkably user-friendly and flexible. New laws allow unused funds in 529 accounts open for a minimum of 15 years to be rolled into a Roth IRA for the beneficiary (limitations apply). Additionally, a lifetime limit of $10,000 in 529 funds may be used to repay an individual beneficiary’s student loan. In some states, parents may use up to $10,000 of 529 funds annually to pay for a child’s kindergarten through 12th grade private school tuition. Check with your state’s 529 plan to see if you can use this benefit.

Families often choose to save with 529 plans because of the tax benefits. They appreciate that 529 earnings grow tax-free, and their withdrawals for qualified education expenses are also free from taxes. Many states offer tax deductions for contributions to a 529 account. For example, South Carolinians who save with our state’s Future Scholar 529 Plan can deduct 100% of their contributions from their state tax returns.

These tax savings are important benefits – and so are the options and possibilities these plans provide. Saving with a 529 plan offers a child the flexibility to choose the educational path that best aligns with their career goals. Whether that path is a four-year college, a vocational school, an apprenticeship, an online course, or a graduate degree, a 529 plan can help them follow their dreams.

About the author:

Curtis Loftis is the State Treasurer of South Carolina. He also serves as the administrator of South Carolina’s Future Scholar 529 College Savings Plan. Visit treasurer.sc.gov or futurescholar.com for more information on ways to save through a 529 plan.

By Dawn Hall, Executive Director of the IDeal – Idaho College Savings Program

January 28, 2025

One of the most impactful things I’ve learned since taking this job is that if a child has a college savings account with as little as $25 in it, they are up to 7 times more likely to go on to higher education and up to 7 times more likely to finish.*

We hear people say, “I can’t afford to save for their entire education, so why start.” Or “I want to save for education for my kids; I just haven’t started yet.”  Or “I don’t know if my kid will go to college.”

Here’s my response, “It’s easy to get started and costs less than most people think. You decide when and how much to contribute. It will support whatever path they choose, and you don’t have to do it alone!”

Most states offer a 529 state plan with tax benefits for contributions. The plans can be used nationwide at eligible colleges, universities, and vocational schools, as well as for registered apprenticeships and student loan repayment.

Follow these simple steps to get started, and remember, the earlier you start, the more time the fund has to grow. To find a plan, go HERE.

  1. Enroll
  2. Select your investment strategy
  3. Set your contribution strategy
  4. Request friends and family help
  5. Monitor the account

1. Go to the website of the plan you want to enroll in. You will need about 15 minutes, your information, and basic information for the beneficiary, such as birthdate, social security number, address, and name.

2. Plans have flexible options that fit your needs and help available to assist you, covering a broad spectrum of investment options to suit varying comfort levels, time horizons, expectations, and personal circumstances.

3. You can contribute anytime or set recurring contributions. Setting up automatic contributions through a bank withdrawal or payroll deduction can help you stay consistent with your budget. Even small regular contributions can have a significant impact over time. Studies show employees save 75 percent more if they have a direct deposit option. (Source: ISS Market Intelligence 529 Industry Analysis May, 2019).

4. Most plans offer a gift code that links directly to your account so friends and family can give the gift of education for a birthday, holiday, special occasion, or even “just because.”

5. Many plans offer an app to help you monitor your contributions and account.

I started IDeal – Idaho College Savings Program funds for my two daughters when they were born. I wasn’t making a lot of money, but by taking it out of my check before I could spend it elsewhere, I was able to start saving. I chose the time horizon investment option and direct deposit – or set it and forget it. As I received pay increases, I increased my contributions. My oldest is using her funds now as a sophomore at Willamette University. My youngest plans to use hers for trade school training to become a welder after high school. I hope I have set them on a path that will keep them from having student loan debt after graduation and taught them the value of saving.

About the author:

Dawn Hall became the Executive Director of the
IDeal – Idaho College Savings Program in July. She has two B.A. degrees and an MPA from Boise State University.

* Source: https://openscholarship.wustl.edu/cgi/viewcontent.cgi?article=1425&context=csd_research

By Trisha Good, Executive Director, Ohio Tuition Trust Authority

January 21, 2025

As we settle into the new year, is one of your resolutions improving your family’s financial health? If so, there are many ways for everyone to learn healthy money habits. Here are some ideas for how to save as a family and have fun while doing it.

Board games

Board games are a fun way to learn valuable life lessons. Choose ones that teach basic principles of personal finance, like the Game of Life, Pay Day, or Monopoly. Some games specifically focus on money management techniques like Cash Flow 101. For a more comprehensive list of board games to teach personal finance skills at different ages, this article lists 53 options. As your family plays these games together, your children can learn core financial concepts to help them in the future.

Books

Reading with your child or grandchild builds their language skills. Reading age-appropriate money books together builds their understanding of how money works and how they can make money work for them. It also allows them to ask questions of you, which can demystify talking about finances with them and can allow for more open communication. And reading these books together also allows you to brush up on your financial basics as well. Here are some money books with which to begin.

Learning how to save

If your children are young, introduce them to basic budgeting concepts with spend, save, and share jars. They can watch how Elmo from Sesame Street saves in those three jars. After earning money from their allowance or completing chores, talk to them about the value of saving now so they can use it later.

For teenagers, show them how to set up a budget to pay for their smartphone, buy gas, or save for their education after high school. Another idea is to give your teenagers money to get school clothes money once per year so they can choose how to spend the funds. This way, they can see how much or how little they can buy, depending on their own personal spending decisions. It’s better to learn what things really cost now to set their financial priorities better later in life.

Parent Magazine also offers guidance on money lessons to teach your children at every age.

Set and incentivize savings goals

Talk to your children about something they would like to have, like a new phone or video game. Then, help them come up with a plan to reach their savings goals. By breaking down their savings goals into small chunks based on their allowance or summer job, they can learn how to budget and then track their progress.

To keep them motivated, you can offer incentives for when they reach new levels with their savings goal. It can be something small like an ice cream cone if they are younger, or you can offer to pitch in a defined dollar amount once they have reached a certain percentage of their goal.

Saving in a 529 plan

Let your children know you are saving for their college and career training. You don’t need to share the dollar amount saved in your 529 account, but you should set your expectations with them–that they will be continuing their education after high school.

Research from the Institute for Higher Education Policy shows that when children know that there are college savings set aside for them, they are much more likely to expect to attend college. In fact, children with $1-$499 in college savings are three times more likely to attend college and four times more likely to graduate than those with no savings.

529 plans are for whatever school comes after high school for your children and grandchildren. Funds in a 529 account can be used tax-free for qualified higher education expenses at four-year colleges or universities, two-year community colleges, trade or vocational schools, apprenticeships, or certificate programs. So, your children can go to a school where their interests, talents, and skills lie.

To learn more about 529 plans, visit My State’s 529 Plan on College Savings Plans Network’s website to learn about all the tax advantages and benefits of saving in your home state’s 529 college and career training program.

About the author: 

Trisha Good is the executive director of Ohio Tuition Trust Authority. Since 1989, Ohio Tuition Trust Authority has sponsored and administered Ohio’s 529 College Savings Program, CollegeAdvantage. Ohio’s 529 Plan oversees more than 678,700 accounts and over $18.2 billion in assets as of December 31, 2024. Visit CollegeAdvantage.com or call 1-800-AFFORD-IT (233-6734) for more information.

By Regina Carmon, Sr. Director, Tuition Financing Relationship Manager

January 14, 2025

Dr. Martin Luther King Jr. contributed countless lessons about life, purpose, and service. Although rooted in the civil rights movement, his wisdom also offers guidance for how we plan for the future of those we love. As we consider decisions about supporting our families and building up our communities, let Dr. King’s words inspire us to prioritize meaningful actions.

“Life’s most persistent and urgent question is, ‘What are you doing for others?’” Dr. King asked this in 1957 during a speech in Montgomery, Alabama, during the civil rights movement. It remains just as relevant today. For parents, grandparents, aunts, uncles, and mentors, this question resonates deeply. It’s not just about the day-to-day ways we care for our loved ones, but also about the long-term opportunities we create for them.

One of the most impactful answers to this question can be investing in their education. A 529 savings plan is one of the best tools to accomplish this in a tax-advantaged way. Whether you’re saving for college, vocational training, certain apprenticeship programs, or even K-12 tuition, a 529 savings plan helps you prepare for the rising costs of education while easing the financial burden on future generations.

Sounds simple enough, yet few Americans are taking advantage of the opportunity. The idea of saving for a child’s education can feel overwhelming, especially with the rising cost of college and other financial responsibilities competing for our attention. That’s where another quote from Dr. King becomes relevant:

“Be a bush if you can’t be a tree. If you can’t be a highway, just be a trail. If you can’t be a sun, be a star. For it isn’t by size that you win or fail. Be the best of whatever you are.”

A decade later, in a 1967 speech at Glenville High School, Dr. King reminded us that it’s not the size of our contribution that matters but the effort and intention behind it. You don’t need to fully fund a 529 account overnight or aim to cover 100% of future education costs. Thanks to the power of compounding, every contribution, no matter how small, can grow over time. Start saving early; a little each month can make a significant difference years later.

When you open a 529 savings plan, you’re answering the call to do something meaningful for others. You’re giving your child or loved one the gift of opportunity, reducing the financial stress of pursuing their dreams, and setting an example of generational generosity.

Why Choose a 529 Plan?

  1. Tax Benefits: Contributions grow federally tax-deferred, and withdrawals for qualified educational expenses are tax-free. Many states offer additional tax deductions or credits for contributions.
  2. Flexibility: Funds can be used for a variety of educational expenses, including tuition, books, room and board, certain student loan repayments, and unused funds may be eligible for a rollover to a Roth IRA (subject to rollover rules and limits).
  3. Control: As the account owner, you maintain control over the funds earmarked for an intended purpose.
  4. Accessibility: Even if you can’t contribute large amounts, consistent small contributions can still yield meaningful results over time. The best part is your village—family and friends—can contribute to your account.

Living Out Legacy

As we reflect on Dr. Martin Luther King Jr.’s words of wisdom, let them inspire us to take meaningful action for the people we care about most. A 529 plan is more than a financial strategy—it’s a way to answer the call to serve and invest in the future.

When you think about the question, “What are you doing for others?” consider how even the smallest steps toward educational savings can be transformative. When you doubt whether your contributions are enough, remember Dr. King’s advice: “Be the best of whatever you are.” By doing your best—whatever that looks like for you—you’re planting generational seeds of opportunity, growth, and success.

Be inspired to act today. Consider opening a 529 plan, make consistent contributions, and start building a legacy that will empower the next generation to live their dreams, pursue their passions, and one day inspire them to do similar for another.

About the Author
Regina Carmon has worked within the 529 industry since 2009 and joined TIAA as Sr. Director, Tuition Financing Relationship Manager in 2022. Regina is the proud parent of her daughter Raye Nicole; and pets Bentley and Jet. She enjoys collaborating on ways to bring financial literacy to the underserved, volunteering monthly to distribute food, serving on the media ministry at church, experiencing cuisines from travels near and far, and spending time with family and friends.

Please read the Plan Description on www.tiaa.org/529 carefully prior to investing, for details on its investment objectives, risks, charges, and expenses, and whether your home state offers tax or other benefits such as financial aid, scholarship funds, or protection from creditors for investing in its own 529 plan. More information about municipal fund securities is available in the issuer’s Plan Description. Investments in the plan are neither insured nor guaranteed and there is the risk of investment loss. Consult your legal or tax professional for tax advice. TIAA-CREF Tuition Financing, Inc. (TFI) is the Plan Manager for several state 529 plans, and TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for those plans. 4132995-0127

By Devon Copeland, Senior Communications Associate, Invest529

January 7, 2025

As we enter 2025, many people are examining their spending habits more closely. Beyond balancing budgets, there’s a growing focus on making financial decisions that reflect their values and support what matters most—family, education, and a secure future.

For parents, grandparents, and guardians, investing in education is one of the most meaningful ways to align finances with purpose. Whether you’re preparing for a child’s college tuition, a trade school certification, or even your own professional development, a 529 account offers a flexible, tax-advantaged way to save for education expenses.

Here’s how a 529 account can help you meet your 2025 financial goals while staying true to your values:

1. Put Your Money Where Your Priorities Are

529 accounts are more than just savings tools—they’re a commitment to education and lifelong learning. In 2025, a 529 account can be a purposeful way to invest in the future you want to see for your family.

Qualified expenses include tuition, fees, room and board, textbooks (if required by the syllabus), and even student loan repayment in some cases. By contributing to a 529 account, you’re making a choice to empower opportunities and break down financial barriers to education.

2. Stay Flexible with Education Plans

Education looks different for everyone, and a 529 account recognizes that. Funds can be used for a variety of post-high school pathways, including trade schools, community colleges, four-year universities, and registered apprenticeships.

Not sure what the future holds? No problem. 529 accounts allow for beneficiary changes, meaning if one child doesn’t use the funds, you can transfer them to another family member—or even to yourself if you’re planning a career pivot or learning opportunity.

3. Let Your Money Work Smarter for You

Saving in a 529 account offers tax advantages that let your contributions grow more efficiently. Earnings are tax-free when used for qualified education expenses, and some states, like Virginia, offer state income tax deductions for contributions.

Think of it this way: Every dollar saved in a 529 is a dollar you won’t have to borrow with interest later. This not only protects your budget but also supports financial independence for the next generation.

4. Start Small, Dream Big

One of the best things about a 529 account is its accessibility. You don’t need to make large contributions to make a significant impact. Small, consistent contributions—whether monthly or annually—can add up significantly over time.

If you’re looking for ways to engage friends and family in your savings journey, consider encouraging them to contribute to your 529 account instead of giving traditional gifts. Many plans allow you to send gift links for easy contributions.

5. Take Advantage of the Present

In 2025, don’t wait to start saving because you feel like you’re behind. Whether your child is in diapers, middle school, or nearing graduation, it’s never too late to make progress. Start with what you can today—every bit counts.

By prioritizing a 529 account, you’re not just saving money but creating a legacy of learning, empowerment, and financial stability.

Make 2025 a Year of Intentional Choices
The new year offers individuals and families an opportunity to focus on financial decisions that align with what matters most. Opening or contributing to a 529 account isn’t just about dollars and cents; it’s about investing in opportunities, dreams, and the values you hold dear.

About the Author

Devon Copeland is the senior communications associate with Invest529. Invest529 makes education more accessible and affordable for families and individuals. The program is administered by Commonwealth Savers Plan, which oversees education 529 saving programs with more than $110.7 billion assets under management and 3.1 million accounts as of November 30, 2024, making it the largest 529 plan in the nation. For more information on Invest529’s education savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials.