By Cheryl Rapp, State of Wisconsin College Investment Program Finance Officer, Edvest 529

September 16, 2025

Each September brings a reminder to look ahead and plan for education because it’s College Savings Month. With the cost of higher education continuing to rise, having a clear savings plan in place is more important than ever. One of the most effective tools to help you prepare is a 529 college savings plan.

Understanding a 529 Plan

A 529 plan is a tax-advantaged account designed to help individuals save for education costs. Whether you’re saving for a child, a grandchild, or yourself, a 529 plan offers several advantages:

  • Tax-Free Growth: Earnings are not subject to federal income tax when used for qualified education expenses.
  • State Tax Benefits: Many states offer additional tax deductions or credits for residents who contribute to their state’s 529 plan.
  • Flexibility: Funds can be used at most colleges, universities, vocational schools, specific K–12 tuition and related costs, and registered apprenticeship programs. They can also be used for up to $10,000 (lifetime) toward student loan repayment.
  • Low Costs and Choice: 529 plans typically offer a range of investment options, often with lower fees than other savings choices.

Think of College Savings Month as your yearly nudge to take action. The sooner you start saving, the more time your contributions have to potentially grow through the power of compounding, and the less you or your student may need to borrow later.

This is also the perfect time to check in on your savings habits:

  • Are you contributing regularly?
  • Could you increase your monthly amount by even $10 or $25?
  • Have you automated your contributions so that saving happens effortlessly?

Tips to Make the Most of College Savings Month:

  1. Open or review your 529 account – Now is a great time to start if you don’t have one. If you do, consider checking in on your investment strategy and goals.
  2. Set up automatic contributions – Regular contributions, even as little as $10 or $25 a month, can build momentum.
  3. Involve family and friends – Let loved ones know they can contribute to your child’s 529 account for birthdays or holidays.
  4. Explore your state’s plan benefits – Some plans offer promotions or incentives during College Savings Month.

College Savings Month is more than a reminder for future planning; it’s an opportunity to take real steps toward funding educational goals. Whether you’re opening your first account or adding to an existing one, a 529 plan can help you maximize your savings through tax advantages, low costs, and flexible use options. Your future self or your future graduate will thank you.

About the Author

Cheryl Rapp is the College Investment Program Finance Officer at the Wisconsin Department of Financial Institutions, which oversees Edvest, Wisconsin’s 529 Plan. Edvest has been helping families save for education since 1997. Rapp has over 25 years of experience working for the State as the College Affordability Specialist prior to joining the College Savings Program.  Her experience includes educating students, parents, teachers, and school counselors on the value of and how to complete the Free Application for Financial Student Aid. In her current role as College Investment Finance Officer for the Wisconsin 529 College Savings Program, Rapp manages outreach to Wisconsin residents. She works to increase awareness of the plans among Wisconsin residents while helping them begin saving for their children’s higher education. She is a graduate of the University of Wisconsin-Green Bay, from which she earned a bachelor’s degree in Humanistic Studies.