There Are a Variety of Options for Using, Managing and Funding The Plans
Americans are largely unaware of options to maximize education savings, with 52% saying they don’t know what 529 plans are, according to new research from Edward Jones and Morning Consult. Given this widespread unfamiliarity, many Americans are not using the tool, with only 14% noting they have or plan to use a 529 plan as part of their education savings strategy.
Zoom in: A 529 plan is an education savings investment account that offers tax benefits when used toward qualified education expenses for the account beneficiary.
Why this matters: Lack of awareness about, and not using, tax-advantaged education savings strategies can hinder both education-specific and broader long-term financial goals.
Tax-free earnings: Earnings in a 529 plan grow tax free and distributions are federally tax free when used for qualified education expenses. Among research respondents, 57% noted that the tax benefits make them more inclined to enroll in a 529 plan.
Flexibility of 529s: There are a variety of options for using, managing and funding the plans.
- More than college: While 529 plans are frequently used for college or university tuition, many respondents were unaware of other uses for which they may qualify, including repayment of student loans (62%); K-12 expenses (65%); and room and board (58%), among other options.
- Gifting contributions for beneficiaries: One in five respondents (20%) would prefer their child receive contributions to a 529 plan or education savings as a gift from loved ones.
- Planning thoughtfully for multiple children: Of the respondents who have more than one child and are enrolled in a 529 plan, 42% have a separate account for each child and 32% have one account for all their children.
Getting professional help: Financial advisors can act as an impartial third party to develop tailored strategies for helping families meet educational savings goals, especially within the context of their broader financial goals. One in five respondents (21%) say that working with a financial advisor would help them feel better about covering the costs of future education expenses.
To learn more about 529 plans, please visit edwardjones.com and search What Is a 529 Plan.
About Edward Jones
Edward Jones is a leading financial services firm serving clients across North America, with operations in the United States and Canada. It ranked No. 1 for advised investor satisfaction among 23 wealth management firms in the JD Power 2026 U.S. Investor Satisfaction Study*. More than 20,000 financial advisors serve over 9 million clients, with $2.4 trillion in client assets under care as of March 27, 2026. Edward Jones’ purpose is to partner for positive impact to improve the lives of its clients and colleagues, and together, better our communities and society. Through the dedication of the firm’s approximately 55,000 associates and our branch presence in 68% of U.S. counties and all Canadian provinces, Edward Jones is committed to helping improve the financial fulfillment for tens of millions of long-term investors across North America by providing comprehensive, personalized planning and professional advice. The Edward Jones website is edwardjones.com, and its recruiting website is careers.edwardjones.com. Member SIPC.
*2026 JD Power U.S. Full Service Investor Satisfaction Study among Wealth Management Firms for Advised Investor Satisfaction, published March 2026, data as of January 2026. Compensation provided for using, not obtaining, the ranking.
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