529 College Savings Plans Explained | Money Unscripted | Fidelity Investments

College: It’s the number one savings priority for parents, according to the Fidelity 2024 College Savings Indicator Study. Yet, families are only on track to cover 30% of the expected costs.

It’s why, on this episode of the Money Unscripted podcast, we’re taking a deep dive into 529 plans. How do these flexible, tax-advantaged accounts work? Who can contribute? What kind of expenses do they cover? And what happens if your child doesn’t go to college? Join host Ally Donnelly and Fidelity’s Cory Latham as they hit the books to help you try and ace your college savings plan. Watch now.

00:00 Welcome to Money Unscripted
01:25 529 Plans: An introduction
04:40 How important is college savings to parents?
05:30 What is a 529 plan? And who can open one?
06:11 What are the benefits of a 529 plan?
06:45 What types of expenses can a 529 be used for?
08:26 What happens my child doesn’t go to college?
10:20 How does a 529 effect financial aid?
12:25 How should I choose a 529 plan?
14:52 How do the savings add up over time with a 529?
15:27 What if I open a 529 plan when my child is older?
16:17 Can people give a gift to a 529 plan?
16:46 529: Key takeaways

Questions? Drop them below 👇 and we’ll reply right in the comments.

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[fidelityinvestments]

How are you planning for your child’s education?

[goldiraexpert]

This was such an insightful discussion on 529 plans! It's great to see parents like Taylor and Samir planning ahead for their children's future. The flexibility of 529s really surprised me too—especially how they can be used for trade schools, student loans, and even Roth IRA transfers. Thanks for breaking it all down in a way that makes financial planning feel less overwhelming!

[grissomfire]

Trade school is a better, less expensive option. Im glad to see this podcast. I've been on the fence over a grandchild 529 and the related expenses. Versus save in my roth and just give it when the time for their schooling comes.

[FeedZeek]

The hardest decision is retirement saving vs 529 savings. Usually the two conflict in savings rate

[jonathanjunkala]

Be aware please, my father took out a College 529 Plan for his sole grandchild 20 years ago. He passed away, and now for just this plan to be distributed for this coming semester to pay a fraction of her tuition, I'm spending what will amount to several thousand dollars to open a Probate Court case, and the 529 Plan people offered no resolution to this costly step. Anything my father made for her over the years will be eaten up in these Court Costs.