62% of individual 529 plan contributions were for $100 or less in 2015.
*Ranked #1 529 program manager in assets under management by Strategic Insight
Parents often have trouble imagining fitting regular college savings into their already stretched budgets. But when we take a closer look, we can see where some easy “saves” can be made and redirected to 529 college savings.
Average planned holiday spending per family1
That money invested in a 529 account over 15 years could grow to approximately2
How are different generations leveraging tax-advantaged 529 accounts to save for education expenses?
Millennials represent less than 8% of 529 account owners on our platform. But they are also entering their adult lives already knowing what a 529 plan is and the benefits of reducing student loan debt.
For financial advisors, there’s great opportunity to build new relationships with these millennials and engage them in a more proactive savings strategy.
Most families ask themselves the same question – how much is enough to cover my child’s tuition costs and how well am I really doing?
% of tuition covered by average 529 account balance for beneficiaries ages 16-17*
4-year in-state public university*
4-year private non-profit university*
4-year out-of-state public university*
2-year community college + 2-year in-state public university*
On our platform, the average account balance for savers with beneficiaries approaching college age is actually enough to cover nearly 50% of the full cost of two years at a community college plus two years at an in-state university.
But rather than aiming to save enough to cover all college costs, savers can also view their 529 account as an effective vehicle to reduce student loan debt.
Our data reveals that most account owners are opting to make smaller 529 contributions more frequently over time. This dispels the the myth that saving for college has to be an "all-or-nothing" approach.
College savings can be built gradually over time at the rate that suits savers' financial situations. Ultimately, every bit of savings can make an impact on reducing future debt.
It's "time in" the market, not "timing" that proves to be college savers' greatest asset. Families who had the foresight to open an account early in a beneficiary's childhood are now in a good position to grow their savings.
Account owners with a beneficiary up to age 5 have accumulated $9,974 in college savings. These savings would cover almost half a year's tuition at a four-year in-state public university.
Our easy, free-to-use Ugift® service allows friends and family to easily and securely contribute to a child's 529 plan account. Friends and family can also make gifting contributions to a 529 account at any time by personal check.
Giving the gift of college savings has definitely grown in popularity the past several years. Since 2012, we’ve seen gifting contributions in our plans grow by almost 300%.
Interested in learning more about how nearly 7 million are saving for the future? Fill out the form below for free access to our full collection of savings trends.