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President Donald Trump onstage at the Treasury Department’s Trump Accounts Summit, in Washington, Jan. 28, 2026.<\/p>\n
Kevin Lamarque | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Starting in July, Trump Accounts<\/a> will give parents a new option to save and invest for their children’s future. But other tax-advantaged savings and investment vehicles already exist \u2014 and are often\u00a0underutilized. <\/p>\n For example, only about 23% of parents currently use 529 college savings plans<\/a>, according to a recent report by Edward Jones<\/a>, a financial services firm.<\/p>\n Saving for a child’s education is a top financial priority, “yet it’s never priority No. 1,” said certified financial planner Andy Esser, an advisor at Edward Jones.<\/p>\n Still, for families exploring their savings options ahead of the July 4 launch of Trump Accounts, “529s are a good fallback \u2014 if not one of the better vehicles \u2014 because of the tax advantages,” Esser said.<\/p>\n<\/div>\n Savings in a 529 plan grow tax-free, and withdrawals for qualified expenses are tax-free. Plus, you may get a\u00a0state tax deduction or credit<\/a>\u00a0for your contribution.\u00a0<\/p>\n Contributions to 529 plans generally\u00a0are invested<\/a>\u00a0in mutual funds that contain a mix of stocks, bonds and cash-like investments. Often, that mix\u00a0becomes more conservative<\/a>\u00a0as your child ages.<\/p>\n<\/div>\nHow 529 plans work<\/h2>\n