As 30th Anniversary of 529 plans approaches a legacy of saving emerges, finds CSF's 19th Annual State of Higher Education Savings Survey
Majority of parents surveyed across the country intend to fund their children's higher education but look for greater emphasis on career and workforce preparation
WASHINGTON, Sept. 10, 2025 /PRNewswire/ -- At a time when there are more higher education options than ever before, nearly three quarters of parents across the country expect their children to continue their education after high school and 86% of them plan to help pay for it, finds CSF's 19th Annual State of Higher Education survey of 1,000 parents across the country. https://collegesavingsfoundation.org/surveys/
Parents also signaled their interest -- for themselves and their children – in continuous career skills and training. 80% expect their children will need them over the course of their lives; and 51% of parents say they themselves will require additional education or certifications to advance or change careers. 75% said that the traditional college experience needs to change, with an emphasis on meeting career and workforce needs.
This was made easier this year with new policy legislation expanding the use of 529s to cover more certifications, from welding and HVAC to aviation mechanics. Impressively, one-third of respondents were aware that 529s could be used for government-recognized certifications.
"We're seeing a growing awareness of the role of 529s in preparing the US workforce with job training and career growth," said CSF Chair Chris McGee. "Over the years 529s have evolved to cover a vast array of education options, from traditional college to technical schools." CSF is a national nonprofit helping families save for education over a lifetime.
In a new question as the 529 industry celebrates its 30th year in 2026, CSF asked parents from their 20s to their 50s if they had used funds from a 529 account for their own education – and 25% said they had. Nearly two-thirds of all parents said this motivated them to save for their own children. As of Q2 2025, there were 16.4-million accounts and $542.4-billion in 529 education savings plans (excluding prepaids), according to ISS Market Intelligence.
"We are heartened to see that parents who once used 529 savings for their own education are using them again to help fund their children's education - creating a legacy of saving," McGee added.
How are parents preparing for the costs of higher education?
- Saving: 36% say that savings is the primary way to pay, followed closely by those expecting grants, scholarships or direct aid (35%). 56% of all parents have saved more than $5,000 per child.
- Specifically, 529 plans: Nearly a third of all parents surveyed are saving in a 529 education plan, with more than half of them doing so because it makes it easy for them to regularly save for their children's education, and almost all of them making monthly, quarterly or annual contributions. 35% of parents said they are or will be using 529s for their own future education needs.
- Kids will contribute: 68% of parents said they expect children to chip in, primarily through job earnings (42%), followed by scholarships, grants and fellowships (29%). 28% say their children are saving in a 529 plan.
Loans still loom large as a source of higher education funding with 69% expecting to take out loans, of which nearly half (49%) are for education loans, 19% are credit cards or cash advances and 10% are from a second mortgage or home equity loans.
"Saving – even in small amounts over time – can help alleviate this pressure on families to go into or extend debt. We know that it is vastly more expensive to pay back loans than it is to save," McGee said.
Ways to make savings easier
He noted that another well-received change in 529 flexibility enabled a tax-free rollover into a Roth IRA for the beneficiary under certain conditions. "One third of parents are aware of that option, which reminds them that any unused funds can go towards a child's long term retirement savings, a great way to jumpstart a young person's retirement savings," he added.
61% of parents said that a 529 account management application would be important, very important or extremely important for help with saving. The most highly ranked feature was related to checking balances, investment performance and progress toward saving goals.
Where do parents expect their children to go for higher education? 59% say college, 15% say career or technical training, with 14% are not thinking about that yet.
The responses of parents of 18-25 year olds offer more insight into where today's young people are going now: 46% say their children are choosing 4-year public (32%) or private (14%) college; 13% career and technical school, including certificates; 13% community college; and 4% Military; 3% apprenticeships, and 20% not attended higher ed at all.
CSF's 19th Annual State of Higher Education survey of 1,000 parents across the country was conducted through Survey Monkey.
CSF is a Washington, D.C.- based not-for-profit organization helping American families achieve their education savings goals for a lifetime. www.collegesavingsfoundation.org
Media Contact:
Lynthia Romney, [email protected] 914-589-2140
SOURCE The College Savings Foundation
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