"What a brilliant idea! I love your website and look forward to changing and growing in many positive and healthy ways." -Amy
Read More Testimonials»

Our Saving for College Experts

Kalman A. Chany

Kalman A. Chany

Founder and president of Campus Consultants

Shared by First30Days View Profile»
Mark Kantrowitz

Mark Kantrowitz

Publisher of FinAid.org and EduPASS.org

Shared by First30Days View Profile»

Meet all of our Finances Experts»

Got a Question?


If you have questions about this change, you're in the right place. Our editors, experts, and community of change optimists have answers!


Question:Savings account or 529?

I'm expecting my first child soon, and my husband and I want to start saving for college asap. I know a 529 makes more sense - if our child does in fact go to college. But what if he eventually decides not to go and needs the money for something else. Can it only be used towards school?

Asked by angie805 on 9/26/08 2 Answers»



Life indeed is GRACE, I'am Daan Sophia currently in California USA. I would like to share my experience with you guys on how I got a loan of $185,000.00 USD to clear my bank draft and start up a new business. It all started when i lost my home and belongings due to the bank draft I took to offset some bills and some personal needs. I became so desperate and began to seek for funds at all means. Luckily for me I heard a colleague of mine talking about this company, I got interested although i was scared of being scammed, I was compelled by my situation and had no choice than to seek advise from my friend regarding this very company and was given their contact number, getting intouch with them really made me skeptical due to my past experience with online lenders, little did i know this very Company "PROGRESSIVE LOAN INC. was a godsent to me and my family and the entire Internet World, this company has been of great help to me and some of my colleague and today am a proud owner of well organized business and responsibilities are well handled all thanks to Josef Lewis of (progresiveloan@yahoo.com).. So if really you are genuinely in need of a loan either to expand or start up your own business or in any form of financial difficulty, i advise you give Mr Josef Lewis of Progressive loan the opportunity of financial upliftment in your life Email: progresiveloan@yahoo.com OR Call/Text +1(603) 786-7565 and not fall victim of online scam in the name of getting a loan. thanks

Answered by: progresiveloan332 on 1/5/18


Money saved in a 529 plan can only be used for education, unfortunately. Otherwise I believe you pay a tax penalty. However, you can change the beneficiary on the cash at any point (even to make yourself the beneficiary) to be used for school. The best thing about a 529 is that if you get a good plan, you can get some serious tax deductions while you watch your cash grow. You might not get as many goodies if you just start a standard savings plan (which might only get you, what 1% interest?).

A LOT can happen in 18 years, and it might be nice to have access to that cash in the event of a job loss, economic crisis, etc. Or you can just eat the loss and pay the tax penalty for taking out the cash for other purposes?

Answered by: Cwolf112 on 9/26/08
Got an Answer?