Saving for College: Is a 529 Plan Worth It?

Having a 529 account sends a message that you are serious about saving for college and that the money gifted will go into a version specifically designed for future educational expenses.

There are several different ways to save for your children’s college education. You can do it old-fashioned and open a bank account designed for college savings.

What is a 529 Plan?

This generally applies to college expenses such as tuition, books, and other fees, though it can also be used for K-12 school tuition.

What Makes a 529 Plan Worth It?

For now, here are a few reasons why we chose to open 529 plans for our kids.

Ability to Receive Gifts

It shows that you are serious about saving for your child’s education. It also reassures that you aren’t planning to take that money and spend it on something different.


Automatic Contributions and Investments

Most 529 plans also allow for direct deposit payroll deductions from your employer. As a result, we put $50 every paycheck into each of our kids’ college funds.


States Offer Tax Deductions or Credits

Be sure to have a conversation with an accredited financial advisor or do your research to find out which will provide the most benefit to you.


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