ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Choose a 529 Plan

Updated on April 25, 2018
caseymel profile image

I have a bachelor's in finance. I am a stay-at-home mom, but my husband likes to call me the CFO (chief financial officer) of our household.

529 Plan

Save Up For College!

Save Up For College!
Save Up For College! | Source

What Is A 529 Plan?

A 529 plan, also known as a College savings plan, is an investment in a child's future. You need to open one for each of your children since one 529 plan cannot be used for multiple children.

You can start a 529 plan with barely any money and put in as little or as much (within limits) as you would like. You could have family members put money in if they would like to also contribute.

The money that you put into your Child's savings account grows with interest over the years until they take it out for college.

If your child decides not to go to College or gets a scholarship, you can roll that money over to another child.

Start contributing to your child's 529 plan when they are babies.

Start contributing to your child's 529 plan when they are babies.
Start contributing to your child's 529 plan when they are babies. | Source

When To Think About A 529 Plan?

As soon as your child is born, you should be thinking about a 529 plan. The earlier you start a 529 plan, the more money your child will have when it is time to go to college.

Compounding interest makes the money that you put in early grow faster than the money you put in later since you are accruing interest on the interest.

Types Of 529 Plans

State 529 Savings Plans: Each state has several 529 plans to choose from.

You could live in Nebraska and sign up for a 529 plan in Alaska if you would like, then your child can go to a college anywhere in the United States. If you sign up for a State 529 plan, it does not tie you down to that state.

Prepaid 529 Plans: You can put money into a 529 Prepaid Plan to save up for in-state college fees. Once your child is old enough to go to college, they would need to go to the college covered by the prepaid 529 plan that you chose.

Look At The 529 Plans Your State Offers

Each state has several College 529 Savings Plans to choose from. If you choose a 529 plan from your state, you may get tax benefits.

I live in Virginia and we have Virginia 529 plans for our children. Since my son and daughter are a few years apart, they are in different Virginia 529 plans.

Each of their 529's are different because they have a different amount of time before they begin college.

The further they are from college, the more risky investments they have in their account. These accounts will have lots of stocks and few bonds.

The closer they get to college, the less risky the investments they will have. These accounts will have more bonds and less stocks.

529 Poll

Have You Started A 529 College Savings Plan?

See results

Studying At College!

Studying At College!
Studying At College! | Source

How To Choose The Right 529 Plan For You?

Tax Benefits - Each State's 529 Plans offer different Federal and State Tax Benefits. As we speak, Virginia has a great tax benefit, but only if you live in Virginia.

Time until child goes to College - Most 529 plans change over time to grow with the child, just like a targeted mutual fund. 529 plans contain stocks and bonds. The closer your child comes to College, the less risky the plan becomes. It may start off containing mostly stocks and end up with mostly bonds by the end.

Interest rates - Look at the long-term interest rates, especially if you start a 529 plan while your child is very young. Long-term interest rates will show you a more accurate rate than the shorter-term interest rates. The interest rates for stocks and bonds are constantly changing.

The Best 529 Plan Of 2018

New York's 529 College Savings Program -- Direct Plan is the number one 529 in the United States of America for 2018 according to

© 2013 Melanie Casey


This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

Show Details
HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
LoginThis is necessary to sign in to the HubPages Service.
Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
AkismetThis is used to detect comment spam. (Privacy Policy)
HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Google AdSenseThis is an ad network. (Privacy Policy)
Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
Index ExchangeThis is an ad network. (Privacy Policy)
SovrnThis is an ad network. (Privacy Policy)
Facebook AdsThis is an ad network. (Privacy Policy)
Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
AppNexusThis is an ad network. (Privacy Policy)
OpenxThis is an ad network. (Privacy Policy)
Rubicon ProjectThis is an ad network. (Privacy Policy)
TripleLiftThis is an ad network. (Privacy Policy)
Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
ClickscoThis is a data management platform studying reader behavior (Privacy Policy)