How to Ask Friends and Family to Contribute to a 529 College Savings Plan

Fifty-five percent of parents currently use, or plan to use, a 529 account to save for their child’s education, according to the 2025 College Savings and Student Debt Survey from Fidelity. But with a shaky job market, inflation, and ongoing economic uncertainty, some parents have been forced to make changes to this savings approach. Of those who have made changes, 45% say they are still saving but have reduced the amount, and nearly one in four say they’ve put college savings on hold to divert money to emergency funds.  

As a first-time mom with a one-year-old, I’ve found myself in the 45% category after a layoff forced me to rethink my own savings goals and priorities. While I’m privileged to have a working husband, the reality of the loss of my income means we’re not able to consistently contribute to extra savings accounts like a 529. So for now, I put aside what I can from different freelancing and contracting gigs, knowing that no contribution is too small when you take into account compound interest. 

“Doing what you can as early as you can is hugely beneficial,” says Melissa Garrett, managing director and financial advisor at the wealth management firm Janney Montgomery Scott, LLC. 

As a mom of three, Garrett says she personally uses a 529 account as a savings tool for her kids’ education, stressing that even “modest, regular contributions can grow significantly over time.”

But parents don’t have to save for this big expense alone. While saving for your child’s education may feel like a personal goal, Garrett says that many family members, especially grandparents, are more than willing to help out.

How can friends and family contribute to your child’s 529 account?

It can be easy to feel overwhelmed by all the stuff that comes with having a kid—especially when the presents start rolling in from friends and family at birthdays and holidays. At the same time, there are so many expenses that come with raising children, and paying for college is a major one.

One easy solution is to encourage friends and family to contribute to your child’s 529 account rather than buying gifts. Most 529 plans have a gifting portal or shareable link you can send directly to family and friends, says personal financial expert Dominique Broadway. “For birthdays, holidays, or baby showers, I always recommend parents share their 529 gifting link alongside a short note explaining that you’re building your child’s future, and every dollar compounds over time.” 

That’s the approach we took for my daughter’s recent birthday. She was born in January, and after her first Christmas, she certainly didn’t need more things. So on the birthday party invitation that we sent to family and friends, we added a kind note that read, “Our daughter is extremely blessed and does not need anymore toys or clothes. Your presence is the only gift she needs. However, if you still wish to give something, you can donate to her 529 college savings plan.” We provided a link to make it easy for guests to contribute. To my surprise, we were sent close to $500 for her account. 

Asking family and friends to contribute to a 529 shouldn’t be a taboo conversation. In fact, Broadway, who is the founder of the financial platform Finances Demystified and a mother of two, encourages parents to “normalize it the same way you'd put a stroller on a baby registry—because it's just as valuable, if not more so.”

“Frame it as investing in your child's future, not just a financial transaction,” Broadway says. “People love knowing their gift will grow.” 

“A lot of grandparents are actively looking for ways to help, and they often want to help with education funding,” Garrett says. “In my practice we see a lot of grandparents opening up their own 529 so they can take advantage of a state tax benefit for themselves. It also allows the grandparent to maintain control of the account, and if that child doesn't go to college, they can then transfer the beneficiary to another one of their grandchildren.” 

Garrett notes that she always encourages clients to name a successor owner to their account so that in the event the account owner passes away before the child is 18, a trusted family member or friend can take over. 

Garrett adds that while the rules vary depending on location, many states also allow you to deduct 529 contributions on your state taxes even if you aren’t the account owner. “I'm based in Virginia, if I make a contribution to a Virginia 529 then I can deduct up to $4,000 of contributions from my state tax return,” she says.

If you’re curious how tax deductions work with your 529, check in with your accountant or look into your plan’s paperwork for more information.

How do 529 accounts work? 

A 529 account is similar to a “Roth IRA but specifically designed for educational purposes,” says Broadway. It’s “one of the most underutilized tools among new parents, and it's something I wish more families started the moment their child is born.”

Money you put into a 529 account grows tax-free, and when you use it to pay for qualified education expenses, like tuition, books, and room and board, you don’t have to pay taxes on the investment earnings, Broadway explains. Plus, as Garrett mentioned, some states offer tax deductions for any contributions you make to the account.

In the past, families have expressed concerns about the flexibility of these accounts, but as Broadway and Garrett point out, account holders can always transfer the 529 to another child or family member if the original beneficiary decides not to go to college. 

Additionally, new laws have expanded the use of 529 accounts. Families can use up to $20,000 annually for qualified K to 12 educational expenses like tuition, curricular materials, tutoring, and fees for standardized tests. Account holders are also able to roll up to $35,000 of unused account funds into a beneficiary's Roth IRA as long as the 529 account has been open for at least 15 years and the funds have been in the account for at least five years prior. However, there are limitations how much you can rollover each year: Your annual contribution can not exceed the Roth IRA contribution limit.

One downside to 529 accounts Broadway says is that if you withdraw money for nonqualified expenses you'll owe income tax plus a 10% penalty on the earnings. 

“There's [also] a common fear that having a 529 will hurt financial aid eligibility,” she adds. “It can have a small impact, but it’s generally minor compared to the long-term benefit of having the account.”

While many families face a lot of challenges when planning for college, Garrett says it’s important to not let these obstacles lead to inaction. “It can be so overwhelming,” she explains. “College costs are really high. There's different financial aid programs, different college savings options, and I think there's more uncertainty about the future of education in general. [My advice] is to start small and start early. The younger your child is when you start, the more opportunity you have for those contributions to grow and just focus on what's reasonable for your family.”