A Network of the National Association of State Treasurers
unclaimed funds state debt treasurers hamilton

By Eric Bennett, College Countdown Editor, ScholarShare 529 

August 6, 2024

Preparing for college drop-off day can be overwhelming. So, here are a few practical matters to consider before your student leaves home.

What to do before your student leaves for college:

  1. Transfer Money—Make sure you can transfer money to your student through bank accounts or services like Venmo for urgent situations.
  2. Medical or Psychological Care – Arrange ongoing care for any preexisting medical or psychological conditions. Contact the student health center to learn about local resources and available services.
  3. Medical Information – Make sure your student knows their medical history, including details of surgeries, allergies, or illnesses. This information is crucial at times when they may not be able to get in touch with you. 
  4. Medical Records Access – Once your teen turns 18, their medical information is protected by HIPPA. Decide if you need access to their records and sign any necessary documents before they leave. 
  5. Local Medical Facilities—Find a local urgent care or emergency room that accepts your health insurance so you won’t have to pay high out-of-pocket costs. A resource like Zocdoc can help. Have your student save these contact details.
  6. Insurance Cards – Make sure your student has health and dental insurance cards with photos of both sides on their phone.
  7. Social Security Number – Make sure they memorize their social security number – they’ll need it. 
  8. First Aid – Create a small first-aid kit with necessary medications and treatments.
  9. Ridesharing—Give them a ridesharing gift card for emergency rides. Our teens might swear they won’t drink and drive, but nevertheless, give them some ride-sharing funds to keep them safe. 
  10. Roommate Contact Info – Share your student’s roommate’s contact information. You may need it in an emergency.
  11. Prescriptions – Plan how they will get their prescriptions filled locally, whether new or preexisting. Check for a local 24-hour pharmacy.
  12. Grade Information—The Family Educational Rights and Privacy Act (FERPA) means parents don’t automatically have access to grades. For some families, this works. For others, access to grades is. Sign the appropriate documents to enable you to see their grades.
  13. Budgeting – Talk about budgeting. For Freshmen, this might include a small budget for extras. For upper-level students, breaking down living expenses helps them realistically plan for rent, insurance, food, and entertainment.

It’s never too early to prepare your student for college – their journey to independence.

About the author: 

Eric Bennett is the editor for College Countdown, a website maintained by ScholarShare 529 for families with college-bound kids. Eric has over three decades of experience in higher education managing recruitment and marketing, financial aid, and student development at three universities from Georgia to California to New York City.  

By Rodger O’Connor, Associate Director, Marketing & Communications, Washington State’s College Savings Plans (WA529)

July 30, 2024

Summer is a time for fun and relaxation—especially for kids. But just because they take a break from school doesn’t mean the learning should stop altogether. The trick is making it fun for them, so they don’t realize they’re learning something!  

Summertime provides plenty of great opportunities to teach kids essential life skills, like saving money. Whether earning from chores or receiving allowances, here are some creative and enjoyable ways to instill good saving habits in children during the summer months. 

1. Treasure Hunt Savings Challenge: Turn saving into a thrilling adventure by organizing a treasure hunt around the house or the neighborhood. Create clues that lead to hidden jars of coins or bills. Each jar could represent a different savings goal, like a gift they’ve had their eye on or a contribution toward their future education. This activity encourages saving and adds an element of excitement and mystery. 

2. DIY Piggy Banks: Gather some old jars, shoeboxes, or containers and let the kids unleash their creativity by decorating them as personalized piggy banks. They can use paints, stickers, and markers to make them unique. Label each bank with a specific savings goal, such as “Ice Cream Fund” or “Save for Something Big.” This hands-on approach makes saving tangible and fun. 

3. Savings Bingo: Create a bingo card with different saving goals or actions, such as “Save a Dollar,” “Skip a Treat Day,” or “Earn Money Doing Chores.” Each time a child completes one of these actions, they can mark it on their bingo card. Offer small rewards or prizes for completing a line or the entire card. This game makes saving interactive and encourages kids to set and achieve financial goals. 

4. Lemonade Stand Economics: A classic summer activity, running a lemonade stand teaches kids valuable lessons about money and entrepreneurship. Help them plan and budget for ingredients, set prices, and track sales. Encourage them to save a portion of their earnings for future goals, such as education, or donate to a cause they care about. It’s a fun way to learn about profit, expenses, and the importance of saving for the future. 

5. Saving with Science: Combine learning with saving by conducting simple science experiments that illustrate saving concepts. For example, use jars and different-colored rocks or liquids to demonstrate how money saved over time can accumulate. Discuss concepts like interest and growth over time in terms that kids can understand. Hands-on experiments make abstract ideas concrete and memorable. 

6. Storytime Savings: Find books or stories that involve characters saving money or making financial decisions. After reading together, discuss the story and its lessons about saving. Ask kids how they would handle similar situations and encourage them to consider their saving goals. Stories can be powerful tools for teaching kids about saving in a relatable way. 

7. Goal-Setting Vision Board: Help kids create a vision board for their summer savings goals. Provide magazines, newspapers, and art supplies so they can cut out pictures and words that represent their goals, such as toys, trips, or future colleges. Display the vision board prominently so they can visualize their goals and stay motivated to save. This visual approach makes saving feel tangible and exciting. 

8. Family Savings Challenge: Turn saving into a friendly competition by setting up a family savings challenge. Each family member can set a savings goal for the summer, whether it’s a small purchase or a family outing. Track progress on a chart or whiteboard where everyone can see. Celebrate milestones together and encourage each other to stay committed to their goals. This fosters a supportive environment and reinforces the value of saving as a family. 

9. Financial Literacy Games: Explore online
or board games designed to teach kids about money management and saving. Games like “Monopoly,” “The Game of Life,” or digital apps can simulate real-life financial scenarios in a fun and engaging way. Play together as a family or encourage kids to play with friends to reinforce financial concepts and strategic thinking. 

10. Savings Celebration: At the end of the summer, celebrate the kids’ savings achievements with a special event or outing. It could be a picnic in the park, a trip to their favorite ice cream shop, or a movie night at home. Recognize their efforts and the importance of their savings goals. This reinforces their saving habits and encourages them to continue managing their money responsibly. 

Teaching kids about saving during the summer doesn’t have to be dull or daunting. By incorporating these fun and creative activities into their summer routines, you can empower children with valuable financial skills that will benefit them for a lifetime. 

While you’re concentrating on instilling strong habits in the kids, don’t forget about your own saving goals. Research the value of opening a 529 account for their education. Continue to contribute if you already have one. Put a little extra in your savings account each month so you’re prepared for unexpected emergencies. Saving and money management is a lifelong endeavor! 

About the author:

Rodger O’Connor is Associate Director for Marketing & Communications for Washington State’s College Savings Plans (WA529), which includes the GET Prepaid Tuition Program and the DreamAhead College Investment Plan. Since 1998, tens of thousands of students have used more than $1.5 billion of their WA529 savings to attend colleges in all 50 states and at least 15 countries worldwide.

School is out for the summer, grills are fired up for barbecue season, and summer vacations are in full swing. As you shop for hot dogs and sunscreen, you will likely notice that school supplies are creeping back into stores.

As a parent, it feels like we never really get a break from thinking about our children’s education. I love a good deal on pencils and notebooks for my high schooler, but I am usually not ready to think about returning to the classroom in the fall until at least August.

If you have a college-age student, however, it is the perfect time to start thinking about preparing for withdrawals from your 529 plan. Whether you have a child heading off to college or are planning to use the funds for other qualified educational expenses, it’s essential to have a plan in place now for making back-to-school withdrawals.

Here are some tips for preparing for fall withdrawals from your 529 plan:

1. Review your needs: Before making any withdrawals, review how much you have saved and how much you will have to withdraw. This will help you avoid taking out more than you need.

2. Know the plan rules: Some states differ regarding what are deemed to be qualified education expenses, so be sure to familiarize yourself with your own state’s definition. It’s important to understand what is allowed before making any withdrawals.

3. Plan: If you know you will need to make withdrawals in the fall, it’s a good idea to plan in advance. How soon you get your money can vary depending on the method you choose for withdrawing funds. A check, for example, might take longer to arrive at a school than if you send your withdrawn funds electronically. Know your school’s deadlines. Planning will help ensure you have access to the funds when needed and can avoid any last-minute stress or delays.

4. Keep track of expenses: As you prepare to make withdrawals from your 529 plan, be sure to keep track of all your qualified educational expenses. This will help you stay organized and ensure that you can prove how you used your funds should you face a tax audit.

5. Consider tax implications: When making withdrawals from your 529 plan, it’s important to know the rules on how 529 funds are taxed. While contributions to a 529 plan are made with after-tax dollars, withdrawals are generally tax-free if they are used for qualified educational expenses. However, if you use the funds for nonqualified expenses, you may be subject to taxes and penalties.

Preparing for fall withdrawals from your 529 plan doesn’t have to be stressful. By reviewing your account balance, knowing the rules, planning, and keeping track of expenses, you can ensure a smooth and successful 529 withdrawal process. And remember, if you have any questions or need assistance, don’t hesitate to reach out to your 529 plan for help.

Now, go enjoy summer!

About the Author

Cherie Zajdzinski is a content creator for Utah’s my529 plan. She recently relocated to Utah after spending two decades living in Anchorage, Alaska, and is thrilled to be a part of the mission of helping families save for higher education.

By Eva Giles, College Savings Program Manager, Finance Authority of Maine

May 14, 2024

Graduation season is a time for celebrating the accomplishments of the students in our lives. What do you gift a graduate to acknowledge these accomplishments and inspire them in the next steps of their journey? To give a gift with a lasting impact, look towards KSAs—knowledge, skills, and abilities.

Knowledge
Graduates will be entering a brand-new world. Whether it is moving to a college campus to begin a 4-year program, starting a part-time course load while balancing work and school, or embarking on a certificate or apprenticeship program focused on developing technical skills, your graduate needs to understand the process, their role, and their responsibilities in this new setting. Do they need to visit the Financial Aid Office, complete student loan counseling materials, or seek out a work-study job? With your help, your student will know the actions they need to complete, important deadlines, and who to contact. Your gift of knowledge while building their own expertise will reduce anxiety and make their tasks manageable.

Skills
Everyone needs help with skills for “adulting.” Introductions and handshakes are important aspects of first impressions that many students don’t practice, and they could use your guidance to perfect them. The ability to create a monthly budget and strategies to commit to the plan is another helpful skill for your graduate to develop as they enter adulthood. Your gift of skill sharing can set the stage for their success.

Abilities
Students need to develop the ability to communicate effectively and to advocate for themselves. Is your student able to talk and write about their strengths and interests? Can they effectively complete a scholarship application? Can they express why an employer may want to hire them for a summer job? Can they navigate a new school infrastructure to get their questions answered? Your help can make a tremendous difference. Edit a scholarship essay or a resume. Provide feedback during a practice interview. Review the college website. Help them become familiar with resources that are available on-campus as well as in the community. Your gifts of wisdom and experience can be just the support they need.

Everyone wants to feel like they have what it takes to succeed. When starting a new challenge, it is helpful for your student to have you reinforce that belief in them. Words of encouragement, recognition of prior achievements, and tangible rewards, such as a contribution to a 529 account, are gifts that demonstrate confidence in your student and encourage confidence in themselves. Sharing your knowledge, skills, and abilities toward building a prepared and resilient individual is one of the best ways to convey – Way to Go, Future Graduate- You got this!

For resources and tools that may help your future graduate, please visit FAMEMaine.com.

About the author:

Eva Giles is the College Savings Program Manager for the Finance Authority of Maine, administrator of NextGen 529®. NextGen 529 is Maine’s section 529 plan which many families use to save for higher education. Outside of work, Eva and her family spend time hiking and enjoying the natural beauty Maine has to offer.

By Devon Copeland, Senior Communications Associate, Virginia529

May 7, 2024

As we enter May, it’s not just any ordinary month – it’s a time dedicated to celebrating mothers and all they do for their families. Mother’s Day is May 12th, offering the perfect opportunity to reflect on mothers’ incredible role in our lives. And what better way to honor the spirit of motherhood than by empowering parents to secure their children’s educational future? This month, let’s harness the power of MOTHER –with six steps to boost your child’s education savings through a 529 account!

Maximize Contributions: Families who have delayed saving typically put it off because they either don’t believe they have the money to start, or they can’t decide on the best way to save. But every little bit counts when it comes to saving for your loved one’s education. Automating your contributions can make saving for future education costs easier, whether setting up withdrawals from your paycheck or simply linking your bank account. Having a steady stream of automatic contributions, even of just $20 or $50, can be powerful.

Optimize Investments: Investing can feel intimidating, but it doesn’t have to be. Take the time to explore your investment options within your 529 account and choose investments that align with your goals and risk tolerance. Consider seeking advice from a financial advisor to help you make informed decisions. Some plans, like Virginia529, offer tools to help you familiarize yourself with available investment options.

Tell Others: Building your child’s education fund can be a community effort. Consider spreading the word about your 529 account and inviting your family and friends to join the savings journey. By sharing your 529 plan with others, you not only open the door for additional contributions but also foster a sense of support and collaboration in securing your child’s future education.

Harness Tax Benefits: One of the biggest perks of a 529 account is its tax advantages. In addition to funds in 529 accounts growing free from state and federal taxes, some states offer additional tax benefits to contributing. For example, Virginia residents may deduct contributions to 529 accounts – up to $4,000 per account per year from their Virginia state individual income taxes.

Explore Options: Different states offer their own 529 plans, each with its own unique features and benefits. Take the time to research and compare plans from different states to find the one that best suits your needs. You may even consider opening multiple 529 accounts to take advantage of different benefits.

Review Regularly: Life is unpredictable, and your savings strategy should be flexible enough to adapt to whatever comes your way. Make it a habit to review your 529 account regularly to ensure it’s still aligned with your goals and circumstances. Adjust your contributions and investment allocations as needed to stay on track and keep your savings growing.

With these MOTHER-inspired tips in your back pocket, you’ll be well-equipped to confidently tackle the challenge of saving for your child’s education. A 529 account offers a powerful tool to help you achieve your savings goals while enjoying valuable tax benefits along the way. Start planning today to give your child the gift of a bright and promising future.

About the Author

Devon Copeland is the senior communications associate at Virginia529. Virginia529 makes education more accessible and affordable for families and individuals. With more than $102.8 billion in assets under management and 3.1 million accounts as of March 31, 2024. Virginia529 is the largest 529 plan in the nation. For more information on Virginia529’s college savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials.

When it comes to saving for higher education, the thought can be daunting. But saving for multiple students at once – how can families make this work? If you opt to save for a loved one’s future education with a 529 college savings plan, you might find the flexibility and tax advantages, like a potential state tax deduction or credit, make saving for multiple students a bit more appealing than intimidating.

Here are a few things to consider if you are currently saving for multiple beneficiaries’ higher education or think you might do so in the future.

Start as early as possible: One sentiment I often hear from parents saving with a 529 plan is, “I wish we would have started sooner!” While that might seem easier said than done, keep in mind that time is your biggest asset when it comes to saving for major milestones like sending a child off to college with less of a need for student loans. When saving with a 529 plan for college and career training, the tax-deferred growth and compound earnings you might experience on your 529 investments can really add up over time. This means even modest contributions over the course of a child’s life can have a meaningful impact. When saving for multiple loved ones at the same time, modest, steady contributions to a 529 plan via payroll direct deposit or ACH can be more easily worked into a household spending plan.

Know that you don’t have to save it all: No really, you don’t! Saving with a 529 plan is just one tool in your toolbox you can use toward the cost of higher education. Saving what you can within your means is often the most approachable and lasting strategy for families. The best thing to do is start—you can always modify your contribution amount or frequency over time. For example, you might consider shifting some of what you were spending on daycare costs to your 529 plan as each child enters kindergarten. As your students near high school graduation, you’ll want to complete the Free Application for Federal Student Aid (FAFSA®) to access grants, scholarships, and work-study opportunities—all types of aid that don’t have to be repaid. Data from the College Board released in 2023 shows that full-time undergraduate students received an average of $10,680 in grant awards during the 2022-23 academic year. When coupled with aid, your savings can go even further!

Make saving a family affair: Not only do you not have to save it all, you also don’t have to do it alone. Once a 529 plan is open, anyone can contribute to it. When it comes time to celebrate birthdays, holidays, or other major milestones like graduation, you can encourage family and friends to make a gift contribution to each of your 529 accounts. Many plans make it easy to do using the Ugift® platform or via personalized gifting pages for each beneficiary. I often hear from grandparents and other family members who genuinely enjoy giving this type of gift. In fact, according to the College Savings Foundation, nearly half of the 1,000 parents who responded to their 2023 State of Higher Education Survey indicated that they prefer 529 gift contributions over traditional presents. And don’t forget to encourage your students to invest in their college savings account once they’re old enough to have a summer job!

Understand tax-free moves you can make: One of the many benefits of saving with a 529 plan is that the account owner can change the beneficiary on an account or transfer funds between accounts tax-free. So, if one of the beneficiaries you’re saving for doesn’t need all their savings – maybe they use less than anticipated to complete a technical degree or apprenticeship program – you can move some or all the funds they didn’t need to a qualified family member who could use an extra boost.

When you save for multiple beneficiaries’ college educations—no matter the final amount you accumulate—you are doing so much more than just saving. You are helping your loved ones develop a sense of self-belief, teaching them healthy financial habits, and preparing them for a future full of opportunity. Keep in mind that any dollar you save for a beneficiary today is one less dollar they will have to borrow in the future.

About the Author

Jessica Wetzel leads the Wisconsin 529 College Savings Program at the State of Wisconsin Department of Financial Institutions (DFI). In this role, she develops effective marketing and outreach strategies to increase awareness of the state’s two 529 Plans – Edvest 529 (direct-sold) and Tomorrow’s Scholar (advisor-sold) – by partnering with entities across the state on educating families on the importance of developing a higher education savings strategy. Before joining DFI, Jessica worked for over a decade in Wisconsin’s community and economic development sector. She successfully led and supported programs and organizations dedicated to helping low- to moderate-income individuals and families achieve homeownership, start small businesses, and join the financial mainstream.

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

April 3, 2024

Spring is most definitely in the air – and on cars, driveways, and all over my backyard furniture. When warmer spring temperatures move into my home state of South Carolina, they will surely bring that thick layer of yellow powder that coats almost every available surface. It’s a yearly occurrence, so folks around here have gotten used to adding “wash off the pine pollen” to their spring cleaning list.

As State Treasurer, however, I like to encourage people to add a slightly different item to their spring cleaning chores. It only takes a little time and is essential to your family’s well-being. You’ll find that cleaning up your finances is both a simple task and a smart move for almost anyone, no matter where you call home.

Analyze your spending to see where you can save.

When you pay attention to where your money goes, creating a family budget is simple to help you stay on track throughout the year. Do you eat out a little too often? Or maybe you’re just realizing you have a designer shoe habit? When creating your budget, you should first list where you need to spend your hard-earned dollars. Then, name the places you want to spend your extra funds.

Find the places you neither want to spend your money nor need to spend your money.

Getting rid of the financial drains on your resources will free up your money for what’s important to you and your family.

Be sure to look toward the future.

This spring, before you patch the holes and paint the fence, sit down in the comfort of your home and take a look at the condition of your finances. Once the cobwebs are dusted off and you’ve decluttered your accounts, you can look forward to those lazy days of summer that lie ahead, knowing you’re in good financial health.  

 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 Brittany Leona Parks, Writer, my529, Utah’s Education Savings Plan

March 5, 2024

Educating children early and often about financial concepts develops saving habits for their first major purchases—a car, higher education, and future housing expenses. One of the best ways for children of all ages to save is to become a mindful consumer.

When children are young, you can invite them to hold the grocery shopping list and categorize which items are wants versus needs. Discuss ads to help them discover what they should prioritize from among the bombardment of suggestions. Finally, have them rank their wish lists to identify comparable value among their items and avoid impulse purchases. 

Once children begin earning money, work with them to make a budget and consider what they hope to buy over the next few months and years. They may see that saving for one item may require postponing another. Note these competing purchases and help them organize their list into short-term and long-term goals. This approach demonstrates that saving for important, expensive items starts with small amounts over time, alongside their other short-term savings goals. 

To support achieving their long-term goals, encourage them to make small regular deposits in a 529 account. “A low- and moderate-income child with school savings of $1 to $499 … is about four times more likely to graduate from college.”* They may be more likely to accomplish their career goals if they have already financially invested in them, whether college, technical college, or Registered Apprenticeships.

As they approach high school graduation, they could also begin to invest in an emergency fund for unanticipated future needs. A car repair or job loss could cost them in credit card interest if they haven’t designated savings for life’s many unknowns.  

Equipping and nurturing the young people in your life with saving habits will allow them to strengthen their financial skills now to focus on achieving their short-term and long-term goals later.

my529 is Utah’s official and only 529 education savings plan and has been helping families save for college for over 25 years. Learn more at my529.org.

*Elliott, William. (2014). Assets and Education Initiative. 2013. Building Expectations, Delivering Results: Asset-Based Financial Aid and the Future of Higher Education. Biannual Report on the Assets and Education Field, July.

About the Author

Brittany Leona Parks is a writer for my529, Utah’s educational savings plan. When not researching financial best practices for children, she is trying these strategies out on her own two kids, hiking with her family, and participating in entirely too many book clubs. She previously spent 8 years marketing to the financial and legal sectors.

By Mary Morris, Virginia529 CEO and College Savings Plans Network, Chair

As we step into 2024, let’s take a moment to reflect on the progress made in education savings over the past year. In 2023, 529 plans across the nation seemed to shake off some of the post-pandemic doldrums of the prior year and saw significant growth, with more families than ever investing in their loved one’s future education.

According to recent data, the amount invested in 529 plans increased by 14% compared to the previous year, to $470 billion in total savings — closing in on half a trillion dollars in education savings! 

Particularly encouraging is that the number of 529 accounts opened nationwide reached an all-time high in 2023, surpassing 16.4 million. Account growth can better indicate the impact of 529 plans as it is based on the people committing to investing in the future, whereas the financial markets impact asset growth. 529 plans across the country are dedicated to encouraging people of all household income levels to open 529 accounts and finding ways to increase awareness of the programs and provide affordable options.

Another indicator of success in 529 plans is average account size growth — in 2023, that increased by 11%. The national average account size now approaches $29,000, covering more than two years of tuition at a typical public, in-state college or university — and going even further for a student opting to start at a community college. These figures highlight the positive impact of consistent saving and careful planning. They also show more work to do as the average student loan debt held by borrowers now tops $37,000.

So, for 2024, what are some simple ways to approach education savings that will really work?  Here are seven practical tips to help you succeed in education saving:

  1. Get started: Begin your savings journey today. Most 529 programs have low opening balance requirements — as little as $5 or $10 (and, in some cases, no contribution) may be required to open a 529 account.
  2. Use “found” money: Take advantage of unexpected windfalls, such as tax refunds, by putting them into your 529 account. This will boost your savings and maximize your long-term growth potential. Many 529 programs make this contribution easy by providing a direct deposit option when filing your taxes.
  3. Make saving easy: Set up automatic contributions from your bank account or paycheck to ensure consistent saving without having to think about it. Just $5 or $10 a month consistently going to your 529 account will make a real difference in the future. 
  4. Share your goals and encourage gifts: Let your student know about their 529 account and encourage contributions from family and friends for special occasions. Gifting platforms and options abound today, making it easy to jumpstart educational savings — with safe and secure ways to use social media and other messaging to encourage gift contributions. 
  5. Increase contributions gradually: Once you take Step 1 and get started, try to increase your contribution rate at least annually, target a percentage increase per year, or take action when you get that raise at work, child care costs decrease, or you pay off that student loan you carried because you didn’t have a 529 account. 
  6. Communicate with your 529 plan: Log into your account frequently, review and update your account details at least annually, and ensure that everything is accurate and aligned with your goals— the start of a new year is a great time to check in if you didn’t do it at year-end.  
  7. Review your investment strategy: Check your portfolio allocation at least annually to ensure it matches your savings goals and risk tolerance. 

By following these tips and staying committed to your education savings goals, you can set yourself up for success in 2024 and beyond. With careful planning and consistent effort, you can provide valuable opportunities for your loved ones’ — or your own — future education.

About the author: Mary Morris is the CEO of Virginia529 and  the chair of the College Savings Plans Network.

Why 529 college savings plans are perfect for technical and vocational pathways

By Jackie Ferrado, Associate Director for Community Engagement, Washington 529 College and Education Savings Plans (WA529)

February 6, 2024

The landscape of higher education is constantly evolving. It has even more so in the past few years as students have suddenly begun learning, studying, and networking from behind the screen. Recognizing that learning can happen from anywhere, at any time, and in a variety of ways is the foundation for increasing access to higher education. 

Diversity in education

When we think of higher education from a holistic point of view, it’s important to consider that employees who come to the workplace with education and training from vocational, technical, and apprenticeship programs are equipped with practical knowledge and skills that allow them to be job-ready and prepared to meet the demands of the specific industry. Through practice and hands-on learning alongside licensed professionals, apprentices gain insights into the real work that may not resonate as well from a classroom setting alone. This approach can be meaningful to employees and employers alike. 

Supporting economic recovery

The cost of pursuing a degree continues to increase, and students may find themselves taking out more student loans than necessary and receiving a credential that may or may not best meet their career goals. Through individual savings efforts and a careful and thoughtful educational path that supports career goals and passions, students with technical and vocational training can often gain valuable skills at a more affordable cost and enter the workforce sooner. As a result, these students may find themselves in a high-demand position with a competitive salary. 

Using 529 funds for trade schools and apprenticeship programs

Families who are saving for their child’s future education in a 529 plan can be confident that if their child prefers a program through a technical, vocational, or apprenticeship pathway, their savings will cover a variety of those expenses. 

Here are three tips for maximizing the benefits of a 529 plan for technical, vocational, and apprenticeship training programs:

Whether a student chooses to continue their education and earn a degree or certificate for their training, their options are wide open, and the experience will provide them with a positive and lasting impact. 

By embracing these diverse pathways and using savings options like a 529 plan, these future students can pursue careers that satisfy their passions and help them build a fulfilling career. 

In the words of Malcolm X, “Education is the passport to the future, for tomorrow belongs to those who prepare for it today”. Let’s give the younger generation the encouragement to pursue their dreams, the tools and information to be financially prepared and the opportunities to create their educational pathways from the variety of available options.

About the author:

Jackie Ferrado serves as the Associate Director for Community Engagement with the Washington 529 College and Education Savings Plans (WA529). Since 1998, tens of thousands of students have used more than $1.7 billion of their WA529 savings to attend colleges and trade schools in the U.S. and at least 15 foreign countries. Outside of work, Jackie enjoys baking, reading, and spending time with her three grandchildren.