Giving Compass' Take:

• This Business Insider post discusses 529 college savings plans and addresses some of the common misconceptions associated with them — including using them for K-12 education. 

• How might we be able to spread more awareness about college savings plan? What can nonprofits do to help mitigate the costs of higher education in the first place?

• Check out some of the recent changes made to college savings plans. 


For the 2018-2019 school year, the College Board reports that the average cost of college tops $48,500 at a private school and over $37,400 for out-of-state students attending a public university.

It's no wonder that parents start to feel the pressure before a would-be student can even read.

That's why many parents turn to the 529 savings plan, which is a state-sponsored, tax-advantaged investment account open to anyone.

While most of us have heard the words "529 plan," these accounts come with a ton of advantages you may not know about. Michael Egan, CFP and founding partner of Virginia-based financial planning firm Egan, Berger & Weiner, sheds light on how to make the most of a 529:

  1. 529s aren't just for traditional college — or limited to tuition.
  2. Anyone can open and contribute.
  3. Another family member can use the money.
  4. If your kid gets a full ride, you can have the money back.
  5. You can choose which 529 you want to use.
  6. You can have more than one account.
  7. You can store a lot of money.
  8. You can front-load the account.
  9. A 529 can last for generations.
  10. You can use the money to pay for K-12 education.

Read the full article about college savings plans by Libby Kane and Tanza Loudenback at Business Insider.