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Back-to-school can mean anything from daycare drop-off and the first big yellow bus ride to a shiny new set of tools or dorm move-in day. As students of all ages head to school this September, National College Savings Month reminds families about the importance of focusing on future education, too. By preparing now for your student's education, you'll be better equipped to ensure the savings are there when they need it.

Here are four reasons to get started now for education costs:

1. Vermont has a plan to make it easy … with a VT tax credit to help you save more

Named after Section 529 of the Internal Revenue Code, 529 plans are designed to help families of all income levels set aside funds for higher education. Most 529 plans are operated by state agencies, like 51������. Vermont’s program benefits family members of all ages, from babies to college and grad students as well as adults returning to training.

Called VT529, the plan was created by the VT Legislature to help families like yours prepare for college or training expenses … with tax-free advantages that help those savings go farther.

As Vermont’s official 529 savings program, it’s the only 529 plan that gives Vermont taxpayers a 10% on annual savings deposits. Married couples filing jointly can claim a state tax credit of 10% of the first $5,000 contributed to a VT529 account each year – for a total Vermont tax credit of up to $500 for each beneficiary. That means if you are married and have two children, for example, and deposit $5,000 in each of their accounts, you get a $1,000 Vermont tax credit for that year. You can make contributions and qualify for the VT tax credit every year. (Single taxpayers can claim up to $250 per beneficiary per year.)

2. VT529 savings help your kids prepare for the jobs of the future

Planning now for education after high school can mean greater opportunities for the future with the choice of  more jobs at better earnings.

Nearly all of Vermont’s most in-demand and highest-paying careers require some form of education or training after high school. With a 529 plan, you get to choose what that future education looks like: VT529 funds can help pay for tuition, computers, housing and meals or off-campus housing, travel, fees, and the costs for qualified apprenticeship programs or retraining at institutions throughout the U.S. (as well as at schools in Canada and around the world). You can even use the funds to pay back student loans. And there is no age or time limit on when your savings are used.

3. Starting small now can add up over time

What if you can’t save a lot right now? If like many Vermonters, you’re focused on meeting today’s financial needs, you may feel that there’s little extra for saving. But you may be surprised what a difference saving even small amounts can make over time. You can  with $25 (or $15 with payroll deduction).

"But it’s never too late to start saving, even if your child is in high school, college or graduate school,” says Scott Giles, president and CEO of 51������, adding that relatives and friends can also help fund a child’s VT529 account through birthday, holiday and graduation gifts. Loved ones can contribute online through , and you can also purchase , which are available in $50 increments at all Vermont locations of Kinney Drugs and Cumberland Farms stores.

The important thing is to begin saving now, with whatever you can afford.

Click the image below to watch the “” video segment with Scott Giles from May 2024 on why Vermont’s 529 savings plan is an ideal place to start. 

4. You’ll be ready for their schooling, for whenever they will need it

National College Savings Month is a great time to learn about the  and start preparing for your loved ones’ education. Find out more about Vermont’s 529 plan at vsac.org/save. Any family who has questions or would like help in setting up an online account can email VHEIPquestions@vheip.org.

And when it comes time to use the funds for education past high school, the VT529 plan now offers a prepaid Mastercard option to pay for eligible education expenses. The VT529 Prepaid Card can be used at any institution or merchant that accepts Mastercard, including online retailers, making it easier than ever to spend and track your 529 funds for college tuition or qualified apprenticeship, technical and vocational education expenses, housing and meals costs, and more. Learn more about the and the many ways .

Need help with education goals or financing? 51������ is here to assist you. You can contact us at 800-642-3177, 8 a.m. to 4:30 p.m., Monday through Friday, and by email at info@vsac.org.

5 ways to save for education (without rearranging your whole life)

Saving for college or training—whether for yourself or your children—doesn’t have to be overwhelming. With a few simple habits, like rounding up purchases or setting aside a little each week, your VT529 savings can grow without big sacrifices.

1. Round up your purchases

Use apps like Acorns to round up your debit card purchases to the nearest dollar and stash the difference in your bank account. Then, schedule a recurring transfer from your bank account to your VT529. These “invisible” savings can easily add up to hundreds per year—and once they’re in your VT529, they can grow tax-free and help you qualify for Vermont’s tax credit.

2. Cash in loose change

Empty your pockets, clean out your car, and check your couch cushions for coins. Collect your change in a jar, and once it’s full, roll your coins and bring them into the bank to turn them into cash. Just like that, you’ve got a lump sum to deposit into your education fund. It’s old-school, but effective.

3. “No-Spend” days or weeks

Challenge yourself to skip unnecessary spending for a day or even a week. Bring your own coffee to work or school, skip those tempting checkout snacks, and watch free movies included with your streaming service. Bonus: you might discover just how often you spend out of habit.

4. Open a “Hidden” savings account

If you struggle to save consistently, open a no-fee savings account at a separate bank and label it “Education Fund.” Automate weekly transfers. Every few months, move your balance into your VT529 account. Out of sight, out of mind—but growing with purpose.

5. Ask for 529 contributions instead of gifts

Ask loved ones to help build the future: contribute to your VT529 college savings plan instead, or as part of, a gift to you or your child. Whether it’s a birthday, holiday, or other celebration, it's a gift that truly keeps on giving.

You don’t have to overhaul your lifestyle to save for education. By staying consistent and intentional with your spending, even small contributions can add up. With tools like the VT529 plan, your savings work harder through investment growth and tax benefits. It’s less about how much you set aside at once—and more about making saving a steady habit.