Forget the 529. These parents are saving for a future without college.
As AI shakes up the job market and higher education, some parents are rethinking how to save for college.
Parents are reconsidering their 529 savings plans as artificial intelligence (AI) complicates the value of higher education degrees. Nataliya Konovalova, a parent, had previously set up tax-advantaged 529 plans for her sons on their birthdays, but now questions the value of a college education. Konovalova, whose sons are now eight and ten, read stories about degree-holders working at low-paying jobs and found that AI offers direct pathways into the workforce for high school graduates.
This led her and her tech-savvy husband to halve their 529 contributions. The number of 529 plans in the US has grown 80% since 2010, but AI is challenging the notion of traditional college degrees. Parents are shifting away from 529 plans, opting for more flexible accounts or questioning whether traditional college is the best investment.
Some parents like David Graham, a retired physician, and Michael Reynolds, a certified financial planner, are considering alternative education models that incorporate AI instruction. Others like Omar Khan are investing in taxable brokerage accounts for their children's future flexibility. Despite concerns, some parents like Matthew Crowson, who works at Harvard Medical School, still see value in 529 plans, hoping for changes in government rules to accommodate alternative education paths.
Written by urgent.news from Business Insider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
