Findings from an Edward Jones and Morning Consult survey maintain with regard to saving priorities, prepping for advanced education costs remains at the forefront.
The 12th annual Edward Jones 529 awareness survey stemmed from a national sample of 2,202 adults ages 18 and older from April 21-23, 2023, and showed the need for advanced education has remained important to 55 percent of survey respondents amid economic challenges that include inflation and higher interest rates.
“While it is great that Americans are prioritizing saving for education expenses, it’s unfortunate that the awareness of 529 plans has declined substantially,” Edward Jones Managed Investments and Insurance Principal Steve Rueschhoff said. “With changes to federal and state laws, 529 plans can now be used for more things, benefitting more Americans and their opportunities for education and advancement.”
Per the survey results, the number of respondents who correctly identified a 529 plan as an education savings tool is at its lowest level since 2020 – 34 percent compared to 45 percent. Financial advisors are essential to raising awareness and confidence in the wake of nearly one in four adults responding to the survey noting working with a financial advisor to guide their financial decisions would help them feel more confident.
“Understandably, with the rise of educational costs and the pressures we’re feeling from the economic environment, Americans are turning toward cost-effective options for education,” Rueschhoff said. “Regardless of the path you take, it’s important to understand all of the available education savings options, such as a 529 plan and its benefits. Many investors simply aren’t aware that 529 plans can not only be used for education costs, but K-12, community college and trade schools.”