Every parent wants to give their children access to the educational opportunities that will help them pursue their dreams and build the future they imagine. Making those opportunities possible starts with funding — because planning ahead and saving with purpose can give families the power to open doors and give their kids the freedom to choose the path that inspires them most.
For today's ever-changing job market, choosing the right higher education path has never been more important, or more complex, and there are more options than ever. College and graduate school continue to open doors to careers and opportunities that might otherwise be out of reach, while certification programs and other emerging pathways are creating new routes to success.
Rather than being discouraged by today's economic challenges, California parents continue to prioritize education — whether through a four-year university, community college or career training — as a meaningful pathway to opportunity and long-term success. Whatever option families choose, saving is key for getting ahead, and many California families remain deeply committed to planning and saving for their children's futures.
As highlighted in the ScholarShare 529 College Countdown article, "Debunking the Headlines: A Closer Look at the Importance of College," the real story is not skepticism, but action: Families are steadily investing in education because they recognize its lasting benefits and the doors it can open.
For families who are ready to take action, California's ScholarShare 529 College Savings Plan offers a powerful and flexible way to invest in their children's futures. With more than $19.2 billion in assets managed across over 500,000 accounts as of May 31, 2026, the plan reflects the broad and growing commitment California families have made to education.
That commitment is only deepening: ScholarShare 529 saw a 121% increase in accounts opened for newborn beneficiaries between 2020 and 2025 — a clear signal that even while many are reassessing the value of a college degree, families are not waiting to start planning. They are choosing to act, and they are doing so earlier than ever.
ScholarShare 529 is specifically designed to help families save for future education expenses, and it's easy to open an account at ScholarShare529.com. By making small monthly contributions, you can take advantage of potential compound earnings over time, as well as powerful tax benefits. Remember: Every dollar you save for education today is one less dollar you may need to borrow later.
"When I first tried to start my college journey, I could only afford to attend one semester," said Cassandra DiBenedetto, Executive Director of the ScholarShare Investment Board. "My family had no resources, so it took 30 years to earn my degree. Families today have more opportunities to help fund their education than they may know about."
Benefits of a ScholarShare 529 plan
ScholarShare 529 has been helping families save for college for over 25 years. The program is administered by the ScholarShare Investment Board and chaired by the California State Treasurer.
Here are some of the main benefits of a 529 plan through ScholarShare 529:
- Investment earnings grow tax-free. Account holders can take advantage of 529 tax benefits for California savers, with 100% tax-free growth on qualified withdrawals.
- Withdrawals are not taxed when used for qualified education expenses. This includes tuition at any accredited college, university, apprenticeship programs, community college or postgraduate program in the U.S. — and even some schools abroad.1
- Funds can be used for a range of qualified education expenses. For example, funds can be put toward tuition at 2-year or 4-year degree programs, post-secondary credential programs or apprenticeships; eligible trade schools; graduate and professional schools; room and board, fees, books, supplies/equipment and technology needed for school.2
- Accounts can be set up easily and do not require financial expertise to manage. ScholarShare 529 is a flexible, tax-advantaged savings plan offering a wide range of investment options to fit your life situation, risk tolerance and savings goals. Best yet, they come with low fees and expenses, and less than half the average expenses of other 529 plans, which means more money for college.3
- Friends and family can contribute. Gifts of any size can be made to an account through Ugift®, an ideal way to celebrate holidays, birthdays and graduations — which add up to a big impact on your child's future plans.
- Beneficiaries can be changed if needed. Funds can be transferred to help other family members over time, whether that's another child or even a parent seeking further education.
"We often see second-generation 529 users," said DiBenedetto. "I met someone who started a ScholarShare 529 account for her husband in community college who now has a master's degree, and then she rolled the account over to their son for his education."
ScholarShare 529 is designed for long-term savings, starting early and benefiting from compounding earnings over time, but you can start saving at any time to help offset education costs. Every contribution and every dollar counts, helping make your family's dreams possible.
"You may think college is out of reach for your family and wonder if it's worth pursuing, but the state of California helps students achieve their goals," added DiBenedetto. "Community college can be attended free of cost for eligible students in the state, and many high school students take advantage of dual enrollment to take community college courses. But there can be additional costs needed to complete their degree, like affording room and board. A 529 plan like ScholarShare 529 can help families get over the finish line."
The sooner families begin contributing to an account, the more potential savings they may see over time. Start making a difference now for your family's future through small monthly contributions at ScholarShare529.com.
Ugift is a registered service mark.
1 If the funds aren't used for qualified higher education expenses, a federal 10% penalty tax on earnings (as well as federal and state income taxes) may apply. Non-qualified withdrawals may also be subject to an additional 2.5% California tax on earnings.
2 Withdrawals for Recognized Postsecondary Credentialing Programs—including tuition, books, equipment, supplies for the enrollment or attendance, testing fees if required to obtain or maintain a Recognized Postsecondary Credential, fees for continuing education if required to maintain an RP Credential and therapies for students with disabilities—are exempt from federal income tax. For California taxpayers, earnings on these withdrawals are subject to state income tax and an additional 2.5% California tax. Consult a tax professional for guidance.
3 Source: ISS Market Intelligence 529 College Savings Fee Analysis 1Q 2026. ScholarShare 529's average annual asset-based fees are 0.21% for all portfolios compared to 0.47% for all 529 plans.
To learn more about California's ScholarShare 529, its investment objectives, risks, charges and expenses see the Plan Description at ScholarShare529.com before investing. Read it carefully. Investments in the Plan are neither insured nor guaranteed and there is the risk of investment loss. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, is the distributor and underwriter for ScholarShare 529. 5582273
