October is Financial Savings Month, an opportunity to think about the financial goals that matter most to our families. For parents, grandparents, and others looking toward a child’s future, education is often near the top of that list.
The cost of education can be significant, and preparing for it does not have to mean knowing exactly what a child will want to do right after high school. A four-year university may be the right choice for some students. Others may attend a community college, learn a skilled trade, or enter an apprenticeship program. The important thing is giving young people options when the time comes to choose their path.
That is one reason why saving early in a 529 plan can make a difference.
Setting aside even $25 a month can help families prepare for future education expenses and reduce the amount students may need to borrow later. Starting early also gives savings more time to grow. Just as importantly, making regular contributions can turn a large future expense into a more manageable, long-term goal.
529 plans are an important tool that parents, grandparents, and anyone saving for a child in their life can consider. While 529 plans are commonly associated with traditional colleges and universities, their potential uses are much broader than many people realize.
Funds can be used for qualified expenses at eligible two- and four-year colleges, universities, and vocational or trade schools. They can also be used for certain expenses associated with registered apprenticeship programs, opening another avenue for students who want to earn credentials while learning on the job.
Families may also be able to use 529 funds for certain K-12 education expenses, subject to applicable federal and state rules. These expanded uses reflect an important reality: education savings do not look the same for everyone, and families may benefit from having savings that can support several different paths.
Of course, saving for education is only one piece of a family’s broader financial picture. Families have different incomes, expenses, and priorities, and there is no single savings strategy that works for everyone. What matters is considering future needs, understanding the options available, and developing a plan that fits within the household budget.
Financial Savings Month is a good time to start that conversation. For a family with a young child, it might mean opening a 529 plan and making a first contribution. For others, it could mean reviewing an existing account, setting up automatic contributions, or encouraging grandparents and other relatives to contribute toward a child’s future education.
No one can know today exactly what path their child will choose in the future, but families can prepare so that when that decision arrives, finances are less likely to stand in the way.
Saving a little today can help create more choices tomorrow.
Roby Smith is the 26th State Treasurer of Iowa and is the administrator of the ISave 529 Plan and IAdvisor 529 Plan. He lives in Davenport, Iowa with his wife Kari and invested in a 529 Plan for each of his four kids. Learn more about ISave 529 at ISave 529.com.
From new and expectant parents planning for the future to children starting kindergarten, stepping up to high school, or moving into a freshman dorm, back-to-school season means something different for every family.
And so does a 529 plan.
A 529 combines the power of tax-free investing with the flexibility to adapt to each child’s unique journey from K-12 through college and beyond.
With students now heading back to class and College Savings Month in full swing, three 529 experts at different life stages share their experiences. Discover how they’re using 529 accounts – and how it applies to your education plans.
Kids in college and beyond: Paying a broad range of expenses
Our two sons could be poster children for a 529 plan’s flexibility.
Our firstborn took a traditional route to college and graduated debt-free last May with a bachelor’s degree. We opened his account a year before he was born, made regular monthly investments, and doubled down during high school to avoid falling short. The 529 ended up covering all tuition and housing costs, with enough left over to kick-start his retirement savings. We basically did everything right.
And then we did everything wrong with our younger son. He has disabilities, and we never thought he’d go to college. It wasn’t until middle school that we finally opened his 529 account, using the special five-year gifting option to make up for lost time.
It’s a good thing we did. After one difficult semester at a four-year university and a summer of online classes through community college, our son is now studying media and music at a city college. Through it all, our 529 has been there to pay every qualified expense, including a special needs counselor and even his music equipment.
There’s no greater gift than giving your children the freedom to choose the right schools for them. My hope is for every family to feel that same sense of comfort with their loved ones. Here’s my advice:
- Don’t procrastinate. Regardless of your family’s situation, your kids are likely to go to college. And if they don’t, a 529 plan gives you plenty of options. You could name another family member as the account beneficiary. You could use the funds for other qualified education expenses, such as apprenticeships, career credentialing programs, or a sibling’s student loans. You can even transfer eligible amounts to a Roth IRA to give kids an early start on retirement.
- Put college savings on autopilot. There will always be a reason to skip 529 contributions. Set up automatic investments to stay on track when everyday life tries to derail your plans.
- Find ways to save more. You think you can’t, but you can. For example, instead of investing once a month, consider contributing part of each paycheck, along with tax refunds, bonuses, gifts, and other extra money. You’ll be surprised how it adds up over the years.
Tricia Scarlata
Head of 529 Education Savings, J.P. Morgan Asset Management
Kids in high school: Ramping up 529 contributions
College is starting to feel very real now that our 15-year-old daughter is in high school. It’s exciting and terrifying and every emotion in between.
Fortunately, we have been preparing financially since opening a 529 account shortly after she was born. As college gets closer, we are becoming more diligent about increasing investments. In addition to automatic monthly deposits, we are now making quarterly catch-up contributions to boost her account.
A 529 plan is a great way to get family and friends involved, too. In our case, my mom has been funding a second account for our daughter through a combination of payroll deductions, monthly contributions, and gifts.
Between those two accounts and the money currently allocated toward private high school, we hope to pay for all four years of college. If everything goes well, we may even have enough for an advanced degree or Roth IRA rollover. We will continue adding to our 529 during college years to replace some of what we withdraw and to take advantage of state income tax deductions.
In hindsight, I wish we had invested more when our daughter was younger to maximize tax-free compounding. Having said that, I would also tell families that it’s never too late to get started or save a little more. Even if college is coming soon, you still have time to put a nice dent in the expenses – and ease the debt burden on your kids and grandkids.
Greg Starita
529 Relationship Manager & Investment Specialist, J.P. Morgan Asset Management
Kids in the future: Getting a head start on college savings
After just one week working in the 529 space, I was sold. I had gotten married only a month earlier. Even though my wife and I don’t expect kids for a few more years, we already opened a 529 account, with me listed as beneficiary until our first child arrives.
For me, getting started early wasn’t about trying to predict the future. It was about giving ourselves more time for compounding and for building good savings habits before life gets busier.
Reviewing J.P. Morgan Asset Management’s college planning guide was all the motivation I needed. Today, we’re making modest monthly contributions and plan to increase them over time. I’m also fortunate that both my parents and my in-laws have opened accounts for their future grandchildren.
What appealed to us most is the flexibility. A 529 eases the uncertainty of saving for a future still many years away. We hope to send at least two children to college someday, but if our plans change, our 529 accounts will adapt with us.
That’s why I encourage other young couples to start saving sooner rather than later, even if it’s only a small amount each month. Don’t let the “what-ifs” stop you, and don’t feel like you need to cover every future college expense on your own. Save what you can, automate the process, and make it a habit. Over time, small contributions add up, and a consistent plan can make a meaningful difference.
Joe Schulman
529 Relationship Manager & Investment Specialist, J.P. Morgan Asset Management
About the authors:
Tricia, Greg and Joe are members of the 529 Education Savings team at J.P. Morgan Asset Management, where they support families and financial professionals planning for college. J.P. Morgan Asset Management serves as investment manager for two 529 plans and produces the award-winning1 College Planning Essentials guide to help investors make well-informed decisions with their education dollars.
Disclosures
1 Gramercy Institute, Financial Content Marketing, Business-to-Multi-Target Single-Country Award, Asset Management Marketing, Focus Award Single-Country Collateral, Fall 2025.
This is a general communication being provided for informational purposes only.
It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit, and accounting implications and determine, together with their own financial professional, if any investment mentioned herein is believed to be appropriate to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.
To the extent permitted by applicable law, we may record telephone calls and monitor electronic communications to comply with our legal and regulatory obligations and internal policies. Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://am.jpmorgan.com/global/privacy.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.
There are few moments in life as exciting, rewarding, and emotional as sending your first child off to college. That moment has finally arrived for me.
I’m still trying to understand how my tiny baby girl has grown into an accomplished, brilliant, and fascinating young woman ready to begin the adventure of a lifetime. While I couldn’t be prouder of Emma, I’d be lying if I said I wasn’t feeling emotional about it all.
As a first-time college mom, I thought I was prepared. I opened a 529 account when Emma was a baby, contributed consistently over the years, and encouraged family and friends to give the gift of education instead of more toys and gadgets. I thought I had done everything right, and I did.
What I didn’t realize was that financial preparation is only half the battle.
Like many families, we navigated applications, essays, transcripts, testing requirements, campus visits, and the pressure of decision day. But our experience was even more complex because Emma is pursuing a Bachelor of Fine Arts in Acting. In addition to the traditional application process, she faced auditions, callbacks, and performance evaluations. Every step brought a mix of excitement, uncertainty, and anticipation.
Then came the decisions.
Do you commit to a school right away? Do you remain on a waitlist and hope for an opening? How do you balance practical considerations with your child’s dreams? Should your child attend a traditional college, a trade school, an apprenticeship program, or pursue an online education? These are questions many families face, and they can be surprisingly stressful.
Then came Move-In Day planning.
When I went to college, moving into a dorm was easy. You packed some clothes, a few school supplies, toiletries, and a set of twin sheets. Then you showed up.
Things. Have. Changed.
Today’s college move-in process requires a level of planning that rivals a military operation. There are storage systems, room décor, mini appliances, charging stations, and enough organizational products to stock a small retail store. And apparently, no dorm room can function without approximately 437 Command Strips.
But more than the shopping lists and move-in logistics, I wasn’t prepared for the emotions.
Emma will only be a four-hour drive away, but the reality of becoming an empty nester is still hitting me harder than I expected. There are moments of pride, excitement, worry, sadness, and gratitude, sometimes all before breakfast.
As I work through those emotions, there’s one thing I don’t have to worry about: how we’ll pay for college.
Because we started saving early through a 529 account, we have the resources we need to support Emma’s educational journey. I can’t imagine managing all the emotions and logistics of sending a child to college while also facing significant financial stress.
The truth is that our savings didn’t come from larger sacrifices alone. They also came from small, consistent choices made over many years. Sometimes it meant skipping the daily coffee-shop run. Sometimes it meant dining out a little less often. Those contributions, combined with gifts from family and friends, added up and created opportunities for Emma’s future.
If your children are still young, consider opening a 529 account now. Even modest contributions can make a meaningful difference over time. And if your child is already nearing college, remember that educational expenses don’t end after the first semester. It’s never too late to start saving with a 529 account.
But don’t just prepare financially. Prepare emotionally, too.
Whether your child is heading across the country, a few hours away like Emma, or commuting from home, this transition is a major milestone for the entire family.
To my fellow parents of incoming freshmen: I’m right there with you. We’ve got this. Keep planning for the future. Keep cheering your children on. And when Move-In day arrives, don’t forget the snacks, the patience, and a healthy supply of Command Strips.
Enjoy every moment. The years really do go by faster than we ever imagined.
About the author:
Mary Anne Busse is the Managing Director of Great Disclosure. She has been advising state government 529 and ABLE Plan administrators since 2000. Mary Anne is an active member of The 529 Network as the Co-Chair of its Legal and State Affairs Committee, and serves on its Communications Committee, Blog Subcommittee, Conference Planning Committees, and several other subcommittees. She is also an active member of the ABLE Savings Plans Network. She recently completed serving her fourth term on the Municipal Securities Rulemaking Board’s Municipal Fund Securities Advisory Group.
Fee payment deadlines have a tricky way of sneaking up on you. Every semester, 529 plan service centers receive frantic calls from parents and students trying to expedite a withdrawal from their 529 account. Granted, while this last-minute rush is stressful, it’s still far better than not having any savings to draw from.
This situation is completely avoidable. While transferring funds from a 529 account to a student’s university account isn’t an instant process, the transfer can happen relatively quickly in most cases. To keep your semester on track, please heed this guidance when you need to take a withdrawal this fall!
Generally, there are four ways to request a withdrawal from a 529 plan, and they can usually be initiated online or by phone. (Note: Your plan may offer additional options. Also note: It is generally advisable for tax purposes to select the student as the payee.)
– Send a check to your address of record: The funds are mailed directly to you, and you pay the school.
– Transfer the funds to your bank account on file: Funds are sent electronically to your bank.
– Send a check to the school’s accounts payable address: The 529 plan mails a check directly to the school. Important: You’ll need to provide the 529 plan with the school’s name and address, the student’s name and student’s ID.
– Electronic transfer (ACH) to the school: Funds are sent directly to the school electronically. Again, ensure the name of the school and the student ID are attached to this request.
As a rule of thumb, request your withdrawal at least 10 business days before the fee payment deadline. However, you should add extra time to your buffer if:
– A check is being mailed to you or the school.
– You are linking a new bank account to your 529 plan (in some cases, safety holds can prevent withdrawals for up to 15 days after linking).
Pro Tip: Consider sending funds directly to the school via electronic options like ACH or other services offered by your plan. While some plans charge a small fee for faster electronic service or overnight express check shipping, it may be worth it to avoid late charges.
What Happens if You Miss the Deadline?
The consequences of missing a fee payment deadline can range from costly late fees to being dropped from your classes for non-payment. Trust me, there is nothing fun about paying extra penalties or losing your seat in a required course!
If you realize you won’t make the deadline:
1. Contact the school immediately: Call the business office or accounts payable department and ask if they offer a temporary deferred payment plan.
2. Use a backup payment method: Pay the amount out of pocket from a personal bank account or credit card to bridge the gap (just be aware that universities often charge a convenience fee for credit cards), then reimburse yourself from the 529 later.
The takeaway: Save the date, schedule your withdrawal at least 10 business days in advance, and follow up with the university to confirm the funds were successfully applied to the account.
Pay your fees on time so your student can get down to the real business of being a student!
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 Plan. She lives in Alaska with her spouse, two children, and two dogs.
As I travel around my home state of South Carolina, I see families preparing to celebrate the 250th anniversary of the signing of the Declaration of Independence. Their many patriotic displays show they understand that the ideals put forth and adopted on July 4, 1776, are foundational to the individual liberties we enjoy today. As Americans, we appreciate freedom in every aspect of our daily lives and value the control it gives us.
Even families saving for their children’s future education want the freedom to choose how they use their money. That’s why many families save with a 529 plan. Today’s 529 plans offer account owners who are saving for education more flexibility than ever before. Below are some of the key freedoms that 529 account owners and their beneficiaries can enjoy.
FREEdom in how it’s used
You probably know that 529 funds may be used for tuition, but they’re also available to be used for many more educational expenses. Whether your child will be living in an on-campus student dorm or in an off-campus apartment, you’re able to use 529 funds to pay for qualified housing as well as student meals. In addition, 529 money may be used to pay for books, software, computers, supplies, and any equipment required to complete coursework.
Tax-FREE
Few investment vehicles allow you to invest money and grow it tax-free, but 529 plans do. Earnings from your contributions are tax-free and compounded. Through compounding, any gains your account earns have the opportunity to make more gains – all tax-free.
And when your child is ready to use their 529 funds, you’re allowed to withdraw the money tax-free, as long as the funds are being used to pay for qualified education expenses.
FREEdom in where it’s used
You can’t predict what your child’s dreams and goals will be, so 529 plans provide the flexibility to use your funds at a variety of educational institutions. You may use funds at any accredited two-year or four-year public or private college, university, technical college, trade school, graduate school program, professional program, or apprenticeship across the United States and in many foreign countries. You may also use funds for professional licensing fees or certificates. You may even use 529 money to pay for up to $20,000 per year of qualified expenses at a public, private, or religious K-12 school.
529 FREEdom equals control
Your 529 funds are always your money, and you have options that keep you in control of any leftover funds in your account.
Transfer the funds. If you have unused 529 funds, you can transfer them to another family member or use them yourself if you plan to continue your education. You may also transfer 529 funds to use for a grandchild’s education.
Pay student loans. You may use up to $10,000 of leftover 529 funds to pay off the student loan debt of the beneficiary, their sibling, or another family member. Perhaps one of your children attended a more affordable school, but your other child chose to pursue an advanced degree that required a student loan. This option could be the perfect solution.
Rollover the funds. You can use your 529 funds for the beneficiary’s retirement. If your 529 account has been open for at least 15 years and the funds have been invested in the account for at least five years, you may be able to roll over up to a maximum lifetime limit of $35,000 to a Roth IRA that is owned by the designated beneficiary.
Withdraw the funds. You may withdraw your money at any time, even for non-qualified educational expenses. Withdrawals for non-qualified expenses are subject to a 10% federal penalty as well as income tax, but only on the earnings portion of the withdrawal – not on the money you originally contributed. If your child receives a scholarship, you may withdraw up to the amount of the scholarship without penalty and pay taxes only on your earnings. We encourage you to consult a tax professional for more information about non-qualified withdrawals and any applicable penalty waivers.
FREEdom from student loan debtAs a State Treasurer, I know how important it is for families to understand that they have the power to help their children avoid significant student loan debt. 529 plans are designed to make saving for education as simple as possible so that you can help put your child on the path toward a successful, unburdened financial future. By opening a 529 account early and contributing as often as possible, you increase your account’s earning potential to fuel your child’s education journey.
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.
