By Devon Copeland, Senior Communications Associate, Invest529
January 7, 2025
As we enter 2025, many people are examining their spending habits more closely. Beyond balancing budgets, there’s a growing focus on making financial decisions that reflect their values and support what matters most—family, education, and a secure future.
For parents, grandparents, and guardians, investing in education is one of the most meaningful ways to align finances with purpose. Whether you’re preparing for a child’s college tuition, a trade school certification, or even your own professional development, a 529 account offers a flexible, tax-advantaged way to save for education expenses.
Here’s how a 529 account can help you meet your 2025 financial goals while staying true to your values:
1. Put Your Money Where Your Priorities Are
529 accounts are more than just savings tools—they’re a commitment to education and lifelong learning. In 2025, a 529 account can be a purposeful way to invest in the future you want to see for your family.
Qualified expenses include tuition, fees, room and board, textbooks (if required by the syllabus), and even student loan repayment in some cases. By contributing to a 529 account, you’re making a choice to empower opportunities and break down financial barriers to education.
2. Stay Flexible with Education Plans
Education looks different for everyone, and a 529 account recognizes that. Funds can be used for a variety of post-high school pathways, including trade schools, community colleges, four-year universities, and registered apprenticeships.
Not sure what the future holds? No problem. 529 accounts allow for beneficiary changes, meaning if one child doesn’t use the funds, you can transfer them to another family member—or even to yourself if you’re planning a career pivot or learning opportunity.
3. Let Your Money Work Smarter for You
Saving in a 529 account offers tax advantages that let your contributions grow more efficiently. Earnings are tax-free when used for qualified education expenses, and some states, like Virginia, offer state income tax deductions for contributions.
Think of it this way: Every dollar saved in a 529 is a dollar you won’t have to borrow with interest later. This not only protects your budget but also supports financial independence for the next generation.
4. Start Small, Dream Big
One of the best things about a 529 account is its accessibility. You don’t need to make large contributions to make a significant impact. Small, consistent contributions—whether monthly or annually—can add up significantly over time.
If you’re looking for ways to engage friends and family in your savings journey, consider encouraging them to contribute to your 529 account instead of giving traditional gifts. Many plans allow you to send gift links for easy contributions.
5. Take Advantage of the Present
In 2025, don’t wait to start saving because you feel like you’re behind. Whether your child is in diapers, middle school, or nearing graduation, it’s never too late to make progress. Start with what you can today—every bit counts.
By prioritizing a 529 account, you’re not just saving money but creating a legacy of learning, empowerment, and financial stability.
Make 2025 a Year of Intentional Choices
The new year offers individuals and families an opportunity to focus on financial decisions that align with what matters most. Opening or contributing to a 529 account isn’t just about dollars and cents; it’s about investing in opportunities, dreams, and the values you hold dear.
About the Author
Devon Copeland is the senior communications associate with Invest529. Invest529 makes education more accessible and affordable for families and individuals. The program is administered by Commonwealth Savers Plan, which oversees education 529 saving programs with more than $110.7 billion assets under management and 3.1 million accounts as of November 30, 2024, making it the largest 529 plan in the nation. For more information on Invest529’s education savings options, visit Virginia529.com or call 1-888-567-0540 to obtain program materials.