Not Just 529s: College Savings Made Simple!

 
If you’ve ever thought, “I know I should be saving for college… but where do I even start?”, you’re not alone!

Saving for college can feel… big. Like really big. Tuition, books, housing, it all adds up so quickly. But here’s the good news: you don’t have to figure it all out at once, and you don’t have to do it perfectly! You just need to start somewhere. Now, let’s break it down in a way that actually makes sense.
 
What is a 529 Plan (And why do people talk about them so much)?
A 529 plan is a special savings account for education expenses. Here’s the simple version:
  • Your money grows tax-free
  • You can use it for qualified education expenses (college, some trade schools, even certain K–12 expenses)
  • Withdrawals are tax-free when used for qualified education expenses
 
What other things can 529 Plan funds be used for other than tuition?
  • Books & supplies
  • Room and board (for eligible students)
  • Some technology expenses
It’s more flexible than people think. If your child doesn’t use it, you can often transfer it to another family member.
 
For Ohio families, the main option is:  Ohio’s 529 Plan (CollegeAdvantage)
  • This is Ohio’s official 529 plan, and it’s a strong option for many families.
Ohio-Specific Perks to Know
  • You may be able to deduct contributions from your state taxes (up to certain limits)
  • The plan is flexible, funds can be used at schools nationwide (not just Ohio)
 

How 529 College Savings Plans Work


What to do if a 529 Plan feels like too much.
Not everyone wants to lock money into an education-specific account right away. Here are other ways to save:
 
Savings (or “Bucket”) Accounts - Open a separate savings account just for college. Be sure to comparison shop, you might find the perfect High-Yield Savings Account that has:
  • Easy access
  • Flexibility for any future needs, whether short or long-term goals
  • Lower risk with guaranteed returns (like CSE’s Money Management or Certificate account options), which is a great starting point
 
Custodial Accounts (UTMA/UGMA) - These accounts allow you to save and invest in your child’s name.
  • More flexible than a 529
  • Can be used for anything that benefits the child (not just education)
  • Becomes the child’s money at a certain age
  • Good for flexible long-term savings
  • Note: less tax advantage than a 529, but you’d need to talk to your official tax expert for all of the tax advantages
 
Gift Contributions - Don’t forget to ask family members to contribute to your child’s future instead of (or alongside) gifts! We know those toys are piling high, so why not consider an easy gifting option, for birthdays or holidays!
 
Did you know? Many 529 plans, including Ohio’s, allow easy gifting options.
 
A Simple Way to Think About It: You don’t need to choose just one option. Many families do a mix:
  • A 529 plan for long-term education savings
  • A regular savings account for flexibility
  • Occasional contributions from family
 
How to Actually Get Started (Without Overthinking It)
If you thought, but what if I can’t save a lot? This is where most people get stuck. Truth is, you don’t need to fully fund college to make a difference! Even small contributions can help reduce future loan needs, build good savings habits, and give your child a financial head start.
 
Start small; even just $25 per month can pay big dividends. Just remember that consistency matters more than the amount. Set up automatic transfers and work towards increasing contributions when you can.
Think: $25/month > waiting for “someday.”
 
Before getting started, be sure to consider resources available: 
Bottom Line
College savings don’t have to feel overwhelming. Whether you choose a 529 Plan, a savings account, or a mix of both, the most important step is simply starting. Trust us, future you (and your child) will thank you.
 

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