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I used to think a 529 plan was only for college, but a blog post from a financial advisor in Austin showed me it can be for trade school too. | Family Finance Planning - Thought Shares

elliot_gibson27•6mo ago

I used to think a 529 plan was only for college, but a blog post from a financial advisor in Austin showed me it can be for trade school too.

I was reading this article last week about saving for kids' futures, and it mentioned that 529 money can pay for things like welding or HVAC programs. I always figured it was just for a four-year university. The post said over 35% of the jobs in the next decade won't need a bachelor's degree, which really surprised me. That changes how my wife and I are looking at our son's fund, because he's way more into fixing things than book learning. Has anyone else used a 529 for a non-traditional path like this?

4 comments

4 Comments

the_lisa6mo ago

Honestly that's a great point, and more people should know about it. Tbh I thought the same thing until my cousin used his for a coding bootcamp. The one thing I'd add is that the 35% number feels a bit low from what I've seen lately, a lot of reports are saying it's even higher for skilled trades. It's smart you're thinking this way early, it gives you way more options.

wilson.joseph6mo ago

Wait, you're saying it's higher for trades? My buddy's kid did an electrician program and the placement rate was crazy good, like way over half his class got hired right out. @the_lisa might be onto something there.

wesley_jones6mo ago

Guess we're all just making up numbers now. I mean, my uncle's neighbor's dog walker heard it's at 50%. Feels like we're just throwing stats at the wall to see what sticks.

matthewdixon5mo ago

Has anyone actually looked at those BLS reports though? I read this breakdown a few months ago that tracked placement rates for different trade programs and the numbers varied a ton by region. Like, for electricians in the Midwest it was pushing 70% within six months, but for welding in some coastal cities it was more like 40%. The 35% number feels like an average that doesn't tell the real story. I remember one specific article that mentioned how community colleges that partner with local unions have way better outcomes than the for profit coding bootcamps. It's so dependent on who's running the program and where you are.

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