College 529 Plans: A Smart Investment in Your Child’s Education

Imagine that moment when your child steps onto a graduation stage, diploma in hand, ready to chase their dreams. It’s a moment every parent hopes to see — and one that comes with years of preparation, effort, and expense. The cost of higher education continues to rise, and student debt now exceeds $1.8 trillion nationwide. College 529 plans give families a way to get ahead of those costs by turning small, consistent savings into a dedicated fund that grows tax-free. Instead of worrying about future debt, you can watch your child step into adulthood with confidence and know you helped make it possible.

What Is a College 529 Plan?

A 529 plan is a tax-advantaged account for education costs. Parents, grandparents, and relatives can contribute. Funds cover college tuition, books, fees, and some K–12 expenses.

These plans are now more flexible. You can use them to repay up to $10,000 in student loans or transfer them to another family member.

Many think 529 plans are only for the wealthy. That’s a myth. Starting with $25 monthly builds momentum. Consistency and time matter most and pay off best when you start early.

Key Benefits of College 529 Plans

With rising costs seemingly everywhere, saving for education can feel overwhelming. However, using your 529 plan can help simplify and automate the process. Federal tax law now permits 529 plan funds to cover K–12 tuition, licensing, tutoring, continuing education, and dual enrollment courses, in addition to college costs.

Here’s what makes these plans so powerful:

• Tax-free growth: Earnings aren’t taxed when used for qualified education expenses.
• Flexible contributions: Start small and increase contributions as your budget allows.
• Wide usage: Cover tuition, fees, books, and even some K–12 costs.
• Less debt later: Every dollar saved is one less borrowed.

If you contribute $100 monthly from when a child is 3, it could grow to over $30,000 by age 18 — assuming modest growth. That’s money your child won’t need to borrow.

How Contributions and Growth Work

The strength of a 529 plan lies in compounding: interest earning interest. The earlier you start, the more your savings grow.

Here’s a simple roadmap: Open a 529 plan with as little as $25–$50. Contribute consistently, even in small amounts. Let it grow tax-advantaged until your child needs it for school.

Secure Your Kids’ Education Futures

Planning for college doesn’t have to be stressful. At Dickstein & Associates, we guide families through evaluating 529 plans within the context of their overall financial goals. Our role is to clarify options, help you avoid missteps, and connect you with trusted financial partners as needed.

A 529 plan ensures financial security and peace of mind, aligning your child’s educational future with your own goals. It’s an investment in something more valuable than money: your child’s dreams. Secure both futures — yours and theirs — with guidance you can trust.

Start your journey now — contact us today to create a personalized college savings plan for your child.

FAQ About College 529 Plans

Why do some families choose not to open a 529 plan?

While 529 college savings plans are one of the most tax-advantaged ways to prepare for education costs, they’re still underused. According to the Education Data Initiative, about 35% of families use a college savings fund (such as a 529) and save an average of $6,844 each. In fact, more than 16 million American families currently have money in 529 plans. Still, awareness is a major barrier — 54% of parents say they’re unaware that 529 programs even exist. For many families, the decision not to open an account comes down to a lack of information rather than a lack of interest in saving.

What is the biggest downside to a 529 plan?

The main limitation is that funds must be used for qualified education expenses. Otherwise, withdrawals may be subject to taxes and penalties. Professional guidance can help you plan properly and avoid surprises.

What happens to a 529 if a child never goes to college?

You can transfer the account to another family member or use the funds for other educational or training expenses. In some instances, unused funds may be rolled into a Roth IRA for the beneficiary. Such action ensures that your savings always support academic goals.

Need additional information? Check out the IRS’s 529 Plan FAQ page.

About Dickstein Associates Agency

At Dickstein & Associates, we are here to help you secure your child’s educational future. We work with families to tailor college planning strategies and connect you to a 529 plan that fits your needs. Contact us to review your options and find the best path forward for your child’s education.