By David Bell, SVP, Program Management, Vestwell

Saving for education and career training can feel daunting—especially at a time when the cost of higher education has risen more than 140% over the past 20 years. Believe me, I just put one daughter through college and have another who will be looking for career training soon. 

People want to plan ahead and invest in their future, but they need tools that make saving easier, more approachable, and more accessible. That’s where 529 plans can make a real difference, especially if you know some tips on how to put them to best work for you.

While 529 plans are often associated with college savings, they’re far more versatile than many people realize. They can support a wide range of educational and career-training expenses. Whether you’re exploring a new 529 or looking for ways to grow your savings, here are some practical ways to make the most of a 529 plan.

1. Understanding the Built-In Tax Advantages

One of the most powerful features of a 529 plan is how it’s structured, particularly when it comes to tax benefits. Here’s what to keep in mind:

  • Tax-free growth: Savings grow tax-free, which over time can significantly increase the impact of even smaller contributions today.
  • Tax-free withdrawals: Funds can be withdrawn tax-free when used for qualified education expenses, including tuition, books, supplies, and certain career-training programs.
  • State-specific incentives: Many states offer additional tax deductions or credits for residents who contribute to their state’s 529 plan. While these benefits vary by state, they can help stretch every dollar saved.

2. Take Advantage of Plan-Specific Features

Not all 529 plans are the same. Many offer features designed to make saving easier, more automatic, or more engaging. Taking a closer look at the tools available through a specific plan can uncover simple ways to build savings (while making it more interesting!).

Here are a few examples of program-specific initiatives that help turn everyday moments into savings progress:

  • Embark 529 BottleDrop Program – BottleDrop has partnered with the state of Oregon to turn bottle and can recycling into savings for education. So, grab your favorite beverage and know you’re helping to educate the future generation! 
  • VT529 Weather Boosters – When a saver in Vermont’s 529 program opts into the Weather Boosters feature, a contribution is automatically made when there is a 50% or greater chance of precipitation in their location. And given Vermont’s winters, it’s helpful that contributions can be set as low as $1. 
  • NextGen Connect 529 Emergency Savings – The NextGen Connect 529 includes access to a linked Emergency Savings Account (ESA) designed to help households build short-term savings. While the ESA does not offer the same tax benefits as a 529 account, it allows funds to be withdrawn without penalties, providing added flexibility for life’s surprises. 

3. Using Life Events to Provide a Little Extra Savings

Life events (both big and small!) often create natural moments to revisit a household budget. Whether it’s a recurring expense ending or a one-time financial boost, these transitions can present opportunities to redirect funds toward long-term goals.

When a major expense ends, such as the cost of diapers or full-time childcare, it can free up room in a monthly budget. Redirecting even a portion of that former expense into a 529 plan can make a meaningful difference over time.

Tax season can also be a powerful moment to move savings forward. If you receive a tax refund, consider directing some or all of it into a 529 account. It’s a simple way to turn a one-time refund into long-term progress toward education or training goals.

For eligible low- to moderate-income workers, credits like the Earned Income Tax Credit (EITC) can also provide an opportunity to boost savings. The EITC is a refundable tax credit designed to support working individuals and families by increasing their tax refund. Using a portion of that refund to fund a 529 account can help families build momentum. 

4. Make Saving Automatic

Consistency matters most when it comes to saving—and most Americans agree. In fact, 83% agree that the most effective way to build savings is to do so automatically, transferring funds regularly from a paycheck or checking account directly into savings.

Many 529 plans allow you to set up recurring contributions or payroll direct deposit, making saving regular and predictable. Some programs even offer automatic annual increases, so contributions grow gradually as income changes, without requiring ongoing adjustments. Automation removes friction and helps turn saving into a habit, rather than a decision you have to revisit regularly.

5. Invite Others to Help Build Your Savings

Education savings don’t have to be a solo effort. Is there a better way to cover your children’s future education than having others help contribute towards it? I don’t think so!

Family members and friends often want to support a loved one’s future, especially around birthdays, holidays, or other milestones. A contribution to a 529 plan can be a lasting gift that grows alongside the child and supports future education or career training.

Many 529 programs make this easy by offering gifting pages, which are secure, shareable links that allow loved ones to contribute directly to an account online. Gifting helps families turn special occasions into long-term savings, creating a meaningful way to be part of their future.

Saving for What Comes Next

529 accounts can be a very effective way to prepare for future education and career opportunities. Even small, consistent steps can add up over time and help open doors to opportunities down the road. 

About the author:

David Bell is Senior Vice President of Program Management at Vestwell, where he leads Education Savings. This includes 529 plans, Child Savings Accounts and Emergency Savings Accounts.  Prior to joining Vestwell, David was the Deputy Director at the Oregon State Treasury where he helped lead the state’s savings programs.  David’s work at Vestwell helps to make savings more accessible for individuals, families and historically underserved communities.