Over Half of Americans Don’t Know About 529 Plans for Education Savings, Edward Jones Study Finds

Despite the strategies and approaches available, many Americans remain unaware of the options to support future education savings plans

ST. LOUIS, May 13, 2025 – New research from Edward Jones and Morning Consult found that Americans are largely unaware of options to maximize education savings, with 52% saying they don’t know what 529 plans are. 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 and use of tax-advantaged education savings strategies can hinder both education-specific and broader long-term financial goals.

“As a financial advisor and parent of four, I've seen first-hand the benefits that 529 plans have for education savings,” said Andy Esser, a Durham, NC-based financial advisor at Edward Jones. “It’s important for Americans to understand how flexible 529 plans have become.  But what's even more important is engaging with a financial professional who's dedicated to educating you on your options, sorting through the most appropriate options and providing clear direction on what actions to take.”

The cost challenge: Amid prioritizing other expenses and financial goals, some feel strained to save for education – and with the cost of borrowing rising, younger generations are even considering skipping higher education altogether.

• Savings struggles: Only two out of five respondents (38%) feel like they are saving enough to reach their goal for future education expenses, a slight drop in confidence since 2024 (40%). This number decreases further for Gen Xers, with only 28% feeling like they’re saving enough.
• Declining interest in higher education: Given inflation and high interest rates, 41% of Gen Zers and 29% of Millennials are more likely to consider skipping higher education and beginning to look for full-time employment or an internship.

Tax advantages: 529 plans offer many tax benefits, including earnings growing tax free and distributions being federally tax free when used for qualified education expenses. This was an attractive factor for respondents, with 57% noting that the tax benefits make them more inclined to enroll in a 529 plan.

Flexibility of 529s: In addition to the tax advantages, 529 plans offer a variety of options for how account holders manage the accounts or how beneficiaries use the funds. Additionally, 529 plans accept contributions from anyone, regardless of whether they are account holders, making it easy for loved ones to contribute.

• More than college: Many don’t realize that 529 plans may qualify to be used beyond tuition for college or university. The majority of respondents are not aware that 529 funds could be used for qualified apprenticeships (72%) or K-12 expenses (65%), 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: If families have multiple children, there are different approaches to consider: whether one 529 account will suffice for all children, or if individual accounts make sense. Of the respondents who have more than one child and are enrolled in a 529 plan, 42% say they have a separate account for each child and 32% say they have one account for all their children. Further, 18% said they’re still figuring out how they plan to manage.

Getting professional help: The majority of respondents (78%) do not typically consult a financial advisor before making decisions related to education savings, but 21% say that working with a financial advisor would help them feel better about covering the costs of future education expenses. Financial advisors can act as an impartial third-party to develop tailored strategies to help meet families’ educational savings goals, especially within the context of their broader financial goals.

To learn more about 529 plans, please visit www.edwardjones.com/us-en/investment-services/account-options/what-529-plan.

Methodology

This survey was conducted by global data intelligence company Morning Consult among a national sample of 2,201 adults ages 18+ from April 8-10, 2025.

About Edward Jones

Edward Jones is a leading North American financial services firm in the U.S. and through its affiliate in Canada. The firm’s more than 20,000 financial advisors throughout North America serve more than 9 million clients with a total of $2.2 trillion in client assets under care as of March 28, 2025. 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 most Canadian provinces and territories, the firm is committed to helping more people achieve financially what is most important to them. The Edward Jones website is at www.edwardjones.com, and its recruiting website is www.careers.edwardjones.com. Member SIPC.

About Morning Consult

Morning Consult is a global decision intelligence company changing how modern leaders make smarter, faster, better decisions. The company pairs its proprietary high-frequency data with applied artificial intelligence to better inform decisions on what people think and how they will act. Learn more at morningconsult.com.