If you’re a parent or guardian, you’ve probably heard about 529 plans - a savings plan for higher education expenses. But did you know that these 529 plans are evolving? In this blog post, we’ll discuss the trends and predictions of the future of 529 plans.

The Rise of Digital 529 Plans 📱

The internet and digital services have made way for a rise in digital 529 plans. This means that less paper documents will be involved in managing these savings plans. Instead, parents and guardians will be able to manage these plans entirely online.

A phone displaying a 529 Plan app on the screen.

The Expansion of Qualified Expenses 💰

The current qualified expenses for 529 plans include tuition, fees, and room and board. However, some predictions suggest that the list of qualified expenses will expand to include more expenses that are not currently qualified - like computers, software, and internet access - as remote learning becomes more prevalent.

A photo of a college student using a computer.

Investment Options Becoming More Customized 📊

Investment options for 529 plans will become more customized, allowing parents and guardians to make more investment decisions for their children’s education. This means that more diverse investment options will be available, and parents and guardians will have more flexibility in how they invest their savings.

A pie chart showing different investment options.

The Focus on Financial Aid 💸

As college costs continue to rise, financial aid will become even more important. And with more people utilizing 529 plans, it’s possible that these plans may affect how financial aid is awarded in the future. Some predictions suggest that the amount of financial aid available to families with 529 plans may decrease if they are viewed as being able to afford more of the cost of college.

A photo of a student reading a financial aid letter.

The Increasing Popularity of 529 ABLE Plans 🤝

529 ABLE plans are savings accounts for individuals with disabilities that can be used for qualified expenses. These plans are gaining in popularity as more families have children with disabilities and as states make it easier to open and manage these savings accounts.

A photo of a smiling person with Down Syndrome holding a diploma.

In Conclusion 🎓

The future of 529 plans is evolving rapidly. With the rise of digital plans and the expansion of qualified expenses, parents and guardians will have more flexibility in how they save and invest for their children’s education. However, it’s important to stay informed as the role of 529 plans in financial aid is still being developed. And as always, it’s important to consult a financial advisor when making investment decisions.

A photo of a graduation cap and diploma with the text "The Future of 529 Plans: Trends and Predictions".