Education Savings as Wealth Building: Why 529 Plans Matter for Black Communities

Black History Month offers an opportunity to reflect on progress and to examine the systems that continue to shape economic opportunity in the United States.

For Black communities, wealth building has often required navigating barriers to asset ownership, credit access, and long-term investment. Those realities were not created in a single generation, and they are not solved in a single month. Expanding access to practical wealth-building tools must be ongoing work.

Education sits at the center of that effort.

For many Black families, education has long been viewed not only as personal advancement, but as a generational strategy—a pathway to economic mobility, career stability, and broader opportunity. Preparing for education costs is therefore not just about tuition. It is about protecting long-term financial progress.

That is why education savings is a wealth-building decision. And it is why access to 529 plans matters.

Education Planning as Financial Protection

The cost of higher education continues to rise, and student loan debt can shape financial decisions for decades, delaying homeownership, entrepreneurship, and retirement savings.

For families already navigating income and wealth disparities, that impact can be magnified.

A 529 plan offers a structured, tax-advantaged way to prepare. Funds can be used for qualified higher education expenses, workforce training programs, certifications, and certain K–12 costs. When incorporated into a broader financial plan, a 529 plan helps families reduce reliance on high-interest debt and protect other long-term assets.

This is not about saving perfectly. It is about building steadily and reducing future financial strain.

Access and Participation Matter

Access to wealth-building vehicles has not historically been equitable. Structural inequities have limited opportunities for consistent long-term asset accumulation across many Black households.

Expanding participation in accessible savings tools is one way to help shift that trajectory.

Today, 529 plans are available nationwide and can be opened with modest contributions. Features like automated deposits and community gifting allow extended family networks—often a meaningful source of support within Black communities to participate in building a child’s future.

Momentum begins with participation. Even modest, recurring contributions can create measurable impact over time.

What the Data Shows

Across the direct-sold 529 programs we manage:

• An average funded account balance of $26,200
• Peak average balances of $38,200 for 17-year-old beneficiaries, reflecting steady growth as college approaches

What we see is consistent, long-term engagement. Balances grow gradually as beneficiaries age, demonstrating disciplined contributions over time.

This pattern underscores an important point: wealth-building does not require large, one-time deposits. It requires structure, access, and sustained action.

Reducing reliance on student loans, preserving retirement savings, and increasing post-graduation flexibility are tangible outcomes of that consistency.

A Year-Round Commitment

Conversations about economic equity often receive heightened visibility during Black History Month. But the work of expanding financial access and participation cannot be seasonal.

Education savings is one practical lever within a broader wealth-building strategy. While no single tool will close longstanding wealth gaps, structured savings vehicles like 529 plans can play a meaningful role in supporting generational mobility.

Wealth is built intentionally, contribution by contribution, decision by decision. When families have access to clear, flexible savings options—and the confidence to use them—education becomes more than an expense to manage. It becomes a lever for generational progress, a tool to unlock opportunity, and a foundation upon which futures are built.

Expanding access to 529 plans is not just a financial strategy; it is a statement of belief in potential, resilience, and the power of planning ahead. By giving families the tools to invest in education today, we help ensure that the next generation can pursue their aspirations with greater freedom, confidence, and security.

True economic equity will not be achieved in a month or a year, but with sustained action, vision, and commitment, we can create a world where every child has the resources to thrive—and every family has the tools to transform possibility into legacy.