Congratulations to the parents with students graduating in the coming weeks and months. It’s an exciting time.  

I graduated from high school thirty years ago. Upon graduation, I received congratulatory cards with money to help me buy books and maybe the occasional pizza. It mattered to me then, and still matters today, that every dollar I received in my graduation cards was money I didn’t have to take out in student loans to cover the expenses that lay ahead during my first year of college.  

At the time, 529s didn’t exist with the exception of a few pre-paid programs that paved the way for the 529 education savings programs widely used today. If I had graduated today, the money received could have been put to work in a 529 account with the potential to grow.

Here are a few tips to consider for your graduate: 

  1. Send a graduation announcement with a QR code for gifts into their 529 account. 
  2. When loved ones give your graduate cash or checks, deposit the funds and transfer a portion to their 529. 
  3. Encourage continued contributions from your generous friends and family. Money deposited in the future can still benefit from market growth over the next 4–8 years. 

Finally, help your student understand that gratitude is the ultimate return on investment. Encourage them to send handwritten thank-you notes that mention exactly how the gift is being used, whether it’s purchasing a specific textbook or seeding their long-term 529 growth. 

Beyond the initial note, a personal phone call or a brief progress report after the first semester lets loved ones know how their investment is paying off in the classroom, elevating their belief in the investment made, strengthening a support network that will cheer them on well past graduation day. 

About the author: 

Lael M. Oldmixon, M.Ed., is the Executive Director of the Education Trust of Alaska, which offers Alaska’s three 529 plans, Alaska 529, the T. Rowe Price College Savings Plan, and the John Hancock Freedom 529 Plan. She lives in Alaska with her spouse, two children, and two dogs. 

Learn more about Alaska 529 at alaska529plan.com, the T. Rowe Price College Savings Plan at troweprice529.com, and the John Hancock Freedom 529 at jhinvestments.com/529.