Start Saving for College with a 529 Plan — ChatGPT Makes It Simple

College costs feel overwhelming — so most parents either panic or postpone. Both responses are expensive. A 529 plan is the most practical tool most families never open. It's a tax-advantaged savings account specifically for education, and you can start one today with as little as $25.

Watch: What Is a 529 Plan?

▶

Watch on YouTube

The Key Things to Know

A 529 plan works like a Roth IRA, but for education instead of retirement. You put money in after taxes, it grows tax-free, and withdrawals are tax-free as long as you use the money for qualified education expenses — tuition, books, housing, even K–12 private school tuition in many states.

Every state offers its own 529 plan, but you are not required to use your own state's plan. You can open a plan in any state. Your own state's plan sometimes offers a state income tax deduction, which is worth checking.

The single best thing about a 529: time is more important than amount. $50/month started when your child is born grows to roughly $17,000 by age 18 (at a 7% average annual return). The same $50/month started at age 10 grows to only about $7,000. Starting matters more than the amount.

Use ChatGPT to Figure Out the Right Plan for You

Open ChatGPT and ask it to help you compare your options:

ChatGPT can also help you think through how much to save:

What If Your Child Doesn't Go to College?

This is the most common reason parents hesitate — and it's less of a problem than it used to be. 529 funds can now be used for trade schools and vocational programs, not just 4-year colleges. Since 2024, up to $35,000 in unused 529 funds can be rolled into a Roth IRA for the beneficiary. And you can always change the beneficiary to another child or family member at any time.