How to Ask for 529 Plan Contributions This Holiday Season. And Feel Great About It
The holidays are a season for giving, and few gifts are more meaningful than those that can help a child succeed in the future. Yet, for many parents, asking friends or family to contribute to their child’s 529 education savings plan can feel awkward.
It shouldn’t.
The truth is, most people want to give something that lasts. Research from Fidelity Investments shows that nearly 90% of grandparents would contribute to a 529 plan if asked. With The Education Plan®, it’s simple for friends and family to give a contribution to a loved one’s 529 plan.
If you have been hesitating to bring it up, this is the perfect time. The holidays offer a natural opportunity to start the conversation in a positive and motivating way.
1. Start with the People Who Care Most
Begin by reaching out to your inner circle, including grandparents, godparents, aunts, uncles, and close friends who love your child. Whether you share your request through a short email, a holiday card insert, or a phone call, explain why contributions to your child’s 529 plan with The Education Plan are meaningful.
You might want to:
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Encourage a lifelong love of learning
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Teach your child the value of saving early
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Reduce clutter and waste from material gifts
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Offer loved ones a way to make a real difference
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When you explain your reasons, it helps others feel connected to your goals. You’re not asking for money. You’re giving them a chance to participate in your child’s growth and success.
2. Add It to the Holiday Wish List
When relatives ask what your child wants for the holidays, have an answer ready. Put a contribution to The Education Plan right at the top of your child’s list.
You can even include their unique UGift® link, which allows family and friends to give directly into the 529 account. It is fast, safe, and easy—no checks or wrapping paper required.
You might say:
“We’re saving for future education through The Education Plan and would love your help growing [child’s name]’s account. Even a small gift can make a big impact.”
A simple, confident message makes the idea of giving feel natural and rewarding.
3. Explain That Every Gift Grows
Many people assume college savings require large amounts of money. The reality is that small contributions today can grow significantly over time.
With The Education Plan, contributions can start at just $25 through UGift. Those funds have the potential to grow tax-free and help cover future education costs, including tuition, books, or vocational training.
You might say:
“A $25 or $50 contribution may not seem like much, but invested through The Education Plan, it can grow into meaningful support for [child’s name]’s education.”
This helps people see the long-term value of their contribution instead of comparing it to the price of a typical holiday present.
4. Combine It with a Small, Tangible Gift
There’s no way around it. Kids love unwrapping presents. Keep the fun of the season alive by pairing a 529 contribution with a small physical gift. Some ideas include:
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A storybook about dreams and possibilities
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A stuffed animal with a “college fund” tag
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A set of art supplies or educational toys
This balance keeps the joy of giving alive while reinforcing the importance of saving for the future.
5. Follow Up with Gratitude
After the holidays, thank everyone who contributed to your child’s 529 plan. A short note or photo can go a long way in showing appreciation.
For example:
“Thank you for helping grow [child’s name]’s 529 account with The Education Plan. Your gift brings us closer to making future education dreams a reality.”
A sincere thank you can help loved ones feel appreciated and keep them inspired to give again for birthdays, milestones, and other celebrations.
6. Keep the Spirit of Giving Going
Saving for education doesn’t have to stop after the holidays. The Education Plan makes it easy to share your child’s 529 account link year-round for birthdays, graduations, and other special occasions.
Contributions to The Education Plan may also qualify for state tax advantages, giving families even more reasons to continue saving throughout the year. Every contribution, large or small, helps build a stronger foundation for your child’s future.
Start the Conversation This Season
The best gifts do more than bring a smile. They create opportunities for the future.
This holiday season, invite loved ones to help invest in your child’s education and give a gift that truly lasts.
Ready to set up your account for gifting? Log in to get started.
Frequently Asked Questions
A 529 plan is a tax-advantaged investment account that is designed to grow savings for future education expenses for a specified beneficiary. 529 plans offer unique benefits and features that make them an appealing strategy for education related saving.
A 529 plan can be used for “qualified educational expenses.” For federal tax purposes, qualified educational expenses include:
- Tuition and fees at accredited higher education institutions
- Books
- Supplies and equipment
- Room and board for beneficiaries attending on at least a half-time basis.
- Computer technology, equipment, and internet access
- Up to $10,000 a year for K-12 tuition and expenses (Limit increase to $20,000 in 2026)
- Expenses for educational special needs services
- Transfers to an ABLE account for the beneficiary (transfer subject to annual limit)
- Apprenticeship expenses
- Up to $10,000 for student loan repayment
- Credentialing expenses and certification programs
- Roth IRA rollover for the beneficiary
If you're not sure if an expense is considered "qualified," we recommend consulting with a tax professional or advisor. Unqualified expenses will be treated like ordinary income: state and federal taxes will apply, with a 10% federal penalty for withdrawals from your 529 plan used to pay for them.
New Mexico residents can deduct contributions to The Education Plan from their state taxable income each year. This includes contributions made to an account that you are not the account owner of.
You cannot deduct contributions from federal income taxes.
Any person at least 18 years old with a valid Social Security Number (SSN) or Tax Identification Number (TIN) can open a 529 account. The account holder chooses the investment options, designates a beneficiary, and requests the distribution of funds.
The cost of college continues to rise, including tuition, housing, food and supplies, so it’s important to begin saving as soon as possible. You can learn more about how much a typical college education costs on our Cost of College page. It’s never too early or too late to start.
The Education Plan offers a variety of investment options to fit you and your family’s needs, risk tolerance and goals. You can see all of the available investment portfolios on the investments page.
Yes, you can use up to $20,000* a year to cover tuition and expenses for K-12 education.
Qualified K-12 expenses include:
- Tuition (public, private, and religious)
- Curriculum materials, books (including digital/online) and instructional materials
- Tutoring and instructional classes**
- Fees for a nationally standardized norm-referenced achievement test, an advanced placement examination, or any examinations related to college or university admission
- Dual enrollment program fees
Educational therapies for students with disabilities provided by a licensed or accredited practitioner or provider, including occupational, behavioral, physical, and speech-language therapies
*Starting in tax year 2026. The annual limit is $10,000 in tax year 2025 and permitted for tuition only.
**Tuition for tutoring or educational classes outside of the home, including at a tutoring facility, but only if the tutor or instructor is not related to the student and—
(i) is licensed as a teacher in any State,
(ii) has taught at an eligible educational institution,
or (iii) is a subject matter expert in the relevant subject.
You can open an account with The Education Plan online or by mailing in the enrollment form. In order to open an account, you will need the following information:
- Your social security number or TIN
- Your address
- Your bank account information (in order to fund the account)
- The beneficiary’s social security number or TIN
- The beneficiary’s birthday
-The beneficiary’s address
