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Finance Glossary

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529 Savings Plan


Want to go to college? With living costs, tuition, books, and everything else, it's going to cost you about as much as a fancy sports car or a nice condo.

We could say the cheesy thing about how a college education will take you further than a BMW. And, hey, maybe it's true, but you're still going to have to cough up the dough. If your parents or granny want to save up cash for you, they can use a 529 Savings Plan. It's a tax advantaged college savings plan for the middle classes. If you meet all sorts of standards, the taxes you pay on college savings are deferred, letting you save up more.

Just one thing: you're going to have to start with a 529 Savings Plan early on if you want to sock away enough for college.