By Devon Copeland, Senior Communications Associate, Invest529
April 2, 2025
April is Financial Literacy Month, making it the perfect time to take a fresh look at how you’re planning for education expenses—whether for yourself, your child, a grandchild, or even a loved one. A 529 account is one of the smartest ways to save, offering tax advantages and flexibility that can make a big difference in the cost of education. But did you know how you approach saving might vary depending on who you’re saving for?
Here’s one key fact to keep in mind for different scenarios:
Saving for Yourself: You Can Use a 529 at Any Age
Many people think of 529 accounts as strictly for children, but they can be a powerful savings tool for adults, too! Whether you’re changing careers, going back to school, or pursuing a new certification, a 529 account can help cover tuition, required books, and even some student loan payments. Plus, if you’re currently employed, you might even find that your employer offers tuition assistance that can complement your 529 savings.
Saving for Your Child: Start Early, But It’s Never Too Late
The earlier you start saving, the more time your money has to grow, thanks to compounding and tax-free earnings. But even if your child is in high school, a 529 account can still provide meaningful savings—every dollar saved is a dollar you don’t have to borrow. And if there’s money left over after their education, you may have options like transferring the funds to another family member, using a portion to repay student loans, or even rolling over up to $35,000 into a Roth IRA for their future retirement savings.
Saving for Your Grandchild: You May Get Tax Perks
Grandparents often love to contribute to a grandchild’s education, and some states offer tax benefits for contributions—even if you’re not the account owner. Additionally, recent changes to federal financial aid rules mean that grandparent-owned 529 accounts no longer impact a student’s eligibility for need-based aid, making it an even more appealing way to help fund their education.
Saving for a Loved One: You Can Open or Contribute to Their 529 Account
Did you know that anyone can contribute to a 529 account? You don’t have to be a parent or legal guardian to open an account for a niece, nephew, godchild, or family friend. And if their parent or guardian already has an account, you can make a gift contribution instead. For example, Invest529 offers easy gifting options, allowing friends and family to contribute online for birthdays, holidays, or special milestones.
Make This Financial Literacy Month Count
No matter who you’re saving for, a 529 account offers flexibility, tax advantages, and long-term benefits. This April, take a moment to review your savings strategy and see how a 529 account can help you or a loved one achieve their educational goals.
About the Author
Devon Copeland is the senior communications associate with Invest529. Invest529 makes education more accessible and affordable for families and individuals. The program is administered by Commonwealth Savers Plan, which oversees education 529 saving programs with more than $110.3 billion assets under management and 3.1 million accounts as of February 28, 2025, making it the largest 529 plan in the nation. For more information on Invest529’s education savings options, visit Invest529.com or call 1-888-567-0540 to obtain program materials.