Key Points
- 75% of U.S. households reported saving for education in 2026, up from 72% in 2025 and 53% in 2015, according to ISS Market Intelligence's annual 529 Industry Analysis.
- Only about 30% of households use 529 plans, while nearly 45% save for education outside the 529 system.
- Families are increasingly using 529 plans for K-12 tuition, apprenticeships, workforce credentials, student loan repayment, and Roth IRA rollovers.
Three out of four American families are now saving for education, the highest share ever recorded in ISS Market Intelligence's 529 Industry Analysis. This year's report is based on a survey of more than 1,000 U.S. households in April 2026.
The survey polled parents and legal guardians of children under 18, with household incomes of $25,000 or more.
Why it matters: Families kept saving through inflation, market volatility, and a shaky labor market. But the data also shows a gap: while 75% of households save for education, only about 30% use a 529 plan. That means most education savers are passing up the tax-free growth and expanded flexibility that 529 plans now offer.
By The Numbers
The share of households saving for education has climbed steadily over the past decade:
- 2015: 53%
- 2020: 58%
- 2025: 72%
- 2026: 75%
Roughly 45% of households save outside the 529 system, and about 25% aren't saving at all.
The Big Picture
The 529 plan is no longer just a college savings account. Survey respondents reported using 529 plans for K-12 tuition, apprenticeships, workforce credentials, student loan repayment, and rollovers to Roth IRAs, a shift that has turned the accounts into broader financial planning tools.
"American families are adapting to a world where education, skills, and career paths are changing faster than ever, and 529 plans are evolving right alongside them," said Paul Curley, CFA, executive director of U.S. research for 529 and ABLE solutions at ISS Market Intelligence. He noted that expanded qualified expenses and new incentives "are driving deeper engagement across demographics."
How This Connects
The rising savings rate matches what the asset data shows. 529 plan assets reached a record $602 billion and the average 529 account balance topped $34,084 at the end of 2025, more than double the 2009 average.
The challenge for the industry now is converting the 45% of families saving outside the 529 system, who miss out on tax advantages that compound over a child's lifetime.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.