May 29 is “529” Day which coincides with the high school graduation season and serves as a reminder to family and friends how important it is to help a child save for their education using a tax-advantaged 529 account.
To build a village of supporters, we have to start with the basics: Do parents and young people know about saving through 529s – and are they using them? The answer to both questions is yes and growing.
The College Savings Foundation (CSF) has been taking the pulse of parents and high school students for nearly a generation. As a national nonprofit helping families save for education over a lifetime, we launched our State of Higher Education Survey of Parents more than 18 years ago, and just released our 16th Annual Youth Survey of 1,000 high school sophomores, juniors and seniors across the country.
What we found was a great deal of awareness about 529s and strong saving behaviors. At the same time, there is an opportunity for parents and students to have deeper conversations about saving and paying for higher education.
The new Youth Survey found that 34% of high school students said either they or their parents were saving for the students’ higher education using 529s. In contrast, the 18th Annual State of Higher Education Survey of parents in the latter half of 2024 found that a majority – 52% – were saving in 529 plans for their children.
Why the difference? CSF Chair Chris McGee suggests that parents are not speaking as candidly to their young people about their savings strategies as they might be.
“This discrepancy suggests that not all students are fully aware of their parents’ 529 savings. Given how ambitious these young people are – and the fact that 85% of students talk to their parents about participating in their higher ed funding, we think there is a great opportunity for families to share more of their strategies and progress around the kitchen table,” he said.
McGee meets many families at 529 events and observes that students take the initiative to learn about 529s.
“Today’s young people are forward-looking and invested in their futures. It’s exciting to see how eager they are to learn how to save and fund their higher education. With more and more conversation among parents – and indeed among families and friends – we can build on this momentum with greater use of 529s,” he said.
The good news is that more parents and their teenage children are saving more than they have before and are using 529s to do so. As families share more information with each other, they can develop the right strategies for them in how to accomplish their higher education goals.
To help here are some key facts from CSF’s recent surveys of teens and parents, showing how they are saving in 529s today – and how they wish to engage a broader community of family and friends in helping.
Given that higher education is one of the most important life decisions that families and students will make, it is critical that parents talk to their teenage child at least annually to understand the child’s aspirations and the financial strategy [approach] in achieving their education goals.
To learn more about 529 gifting, visit our interactive map of member programs here.