529 Day: Why I Call My Daughter My Not-So-Broke Bestie

Every May 29th, we celebrate 529 Day—a day dedicated to raising awareness about 529 plans, one of the most powerful (and underused) tools for building a child’s educational future.

As a public health expert, financial wellness strategist, and mom, I know the ripple effects education—and student debt—can have on a person’s entire life. That’s why I opened a 529 plan for my daughter Madeline when she was just a toddler.

Now she’s 6, and the co-author of our children’s book Madeline’s Money Adventure. Around here, we call her my not-so-broke bestie—because while she doesn’t have a job, she does have a financial strategy.

And more importantly, she has tools, language, and confidence around money that most adults didn’t get until their 30s.

What Is a 529 Plan, and Why Should You Care? 

A 529 plan is a tax-advantaged savings account specifically designed to help families save for education. It can be used for:

• College tuition, fees, room and board

• K–12 private school tuition (up to $10,000 per year)

• Apprenticeship programs

• Student loan repayment (up to $10,000 per beneficiary)

Here’s why 529 plans are a big deal:

• Contributions grow tax-free

The money you invest in a 529 grows tax-deferred—and withdrawals are completely tax-free when used for qualified education expenses.

• You stay in control

The account owner (usually a parent or grandparent) stays in charge of the funds, not the child. You decide how and when to use the money.

• You don’t have to use your state’s plan

While some states offer tax deductions for contributions, you can shop around for the best plan even if it’s out of state. (Check SavingforCollege.com for comparisons.)

• It won’t kill your financial aid

Parent-owned 529s have a minimal impact on financial aid eligibility compared to assets owned in the child’s name.

How to Open a 529 Plan in 15 Minutes 

Opening a 529 plan is simpler than most people think:

1. Choose your plan.

Use a comparison tool like College Savings Plans Network or SavingforCollege.com to compare fees, performance, and tax benefits.

2. Gather your info.

You’ll need Social Security numbers and addresses for you and your beneficiary (your child).

3. Pick your investment strategy.

Many plans offer age-based portfolios that grow more conservative as your child gets older.

4. Set up contributions.

You can start with as little as $25 in many plans. Monthly auto-deposits make it easy to stay consistent.

Worried You Can’t Save “Enough”? Start Anyway. 

One of the biggest myths I hear is: “I can’t afford to save for college.” 

Here’s the truth: even small, consistent contributions can grow meaningfully over time—especially if you start early. 

Plus, 529s accept gift contributions, which means birthdays and holidays can be chances for family and friends to invest in your child’s future.

Not Just for Parents: Who Else Can Open a 529?

• Grandparents

• Aunts/uncles

• Family friends

• Even the child themselves

You can even change the beneficiary later, so if one child gets a scholarship or doesn’t go to college, the money can go toward another child—or even your own continuing education.

How This Ties Into My Work 

I wrote How to Afford College because I spent 8 years in grad school—and left with no new debt. I want others to know that’s possible.

We co-wrote Madeline’s Money Adventure because kids form money habits by age 7. They will pick up money lessons. What if we were intentional about which ones?

529s are one of the tools that make all of this possible. They’re not the only answer—but they’re a powerful part of the plan.

Next Steps: Helpful 529 Resources

• Saving for College Calculator

• State-by-State 529 Tax Benefits

• College Savings Plans Network: Plan Comparison Tool

If you haven’t started a 529 plan yet, today is a great day to take that first step. And if you already have one, give yourself a gold star—you’re investing in options, opportunity, and peace of mind.

Let’s raise a generation that knows how to spend, save, and strategize—starting now.