By Jessica Wetzel, Director, Wisconsin 529 College Savings Program

July 22, 2025

When many families hear the term “529 college savings plan,” they often think of saving for a traditional four-year college. While that is a desirable option for many students, savings in a 529 plan can be used for various educational pathways outside of a four-year degree that can lead to rewarding and well-paying careers. 

Beyond Just the Four-Year Track

Today’s workforce is full of opportunities that require different types of education or specialized training – and 529 plans can help fund many, including:

  • Two-year associate degree programs at community colleges
  • Trade, technical, and vocational schools (ex: plumbing, HVAC, cosmetology)
  • Registered Apprenticeship programs (certified with the Secretary of Labor under the National Apprenticeship Act)
  • Certificate programs (ex: healthcare, technology, business)

Whether a student is studying to become a dental hygienist, computer technician, or electrician, your 529 savings can play a critical role in helping them get there.

Potential of a Two-Year Degree

Though a bachelor’s degree can often lead to higher lifetime earnings, it is not the only way to achieve career success or financial stability. According to data from the U.S. Bureau of Labor Statistics, any level of education beyond high school correlates with higher earnings and lower unemployment.

For students who are unsure about committing to a four-year degree or who want to reduce their education costs, pursuing a two-year associate degree from a community college or technical school can be a great option. In 2024, entry-level occupations typically requiring an associate degree had a median annual wage of $57,150, compared to an annual median wage of $48,360 for those with only a high school diploma (“Education pays, 2024,” Career Outlook, May 2025).

Many two-year programs are even designed to seamlessly transfer to a four-year program, ultimately allowing students to earn a bachelor’s degree at a reduced cost. Not only does this route offer potential cost savings, but it also gives students more time to explore their interests, identify their strengths and talents, and determine their career goals. 

And because there is no time restriction on when a student uses their 529 plan savings, they have the option of securing a two-year degree, entering the workforce, and tapping back into their 529 plan down the road if they decide to return to school to advance their education further.

Certificate & Apprenticeship Programs

Certificate and apprenticeship programs can also lead to strong salaries in high-demand industries. In fact, according to the U.S. Department of Labor, the average starting salary after an apprentice completes an apprenticeship program is $84,000 annually.

Many certificate and apprenticeship programs are offered through accredited trade, technical, and vocational schools, where you can utilize your 529 plan savings. Apprenticeships combine classroom instruction with hands-on, paid work experience, giving participants a head start in their chosen industry. Your 529 plan savings can help cover costs like tools, books, supplies, or course fees required to complete training.

A wide range of industries and a growing number of employers are implementing apprenticeships to meet their needs. If this type of pathway sounds like a good fit for your student, explore the Department of Labor’s Registered Apprenticeship Industries page to learn about high-demand occupations and find industry resources.

529 Plans Offer Evolving Flexibility

In today’s fast-changing economy, flexibility is critical. Many jobs that didn’t even exist a decade ago now require specialized training or certifications. Yet, the term “college” continues to evoke the idea of a four-year school for many. Whether you are just starting to save or have been putting aside money in a 529 plan for your student’s future for years, remember that success doesn’t have a one-size-fits-all path, and 529 plans continue to evolve to support many education and training options.

As a powerful, tax-advantaged savings tool, a 529 college savings plan can help families prepare financially for higher education while offering the flexibility needed to support a student’s unique career path — whether it involves a university lecture hall, a welding bench, or a computer coding bootcamp.

About the Author

Jessica Wetzel is the director of the Wisconsin 529 College Savings Program at the State of Wisconsin Department of Financial Institutions (DFI). DFI is the state administrator of Wisconsin’s Edvest 529 (direct-sold) and Tomorrow’s Scholar (advisor-sold) plans, which collectively hold more than $8 billion in assets under management. Jessica earned a B.S. in Community Education & Urban Studies from the University of Wisconsin, Milwaukee, along with a certificate in Community Based Organization Policy & Leadership. Before joining DFI, Jessica worked for over a decade in Wisconsin’s community and economic development sector, where she successfully led and supported programs and organizations dedicated to helping low- to moderate-income individuals and families achieve homeownership, start small businesses, and join the financial mainstream.