An article in Ignites (subscription required) recently mentioned a new study from Fidelity that was released last week discussing the low levels of college savings among parents. According to the report, although 58% of the 2,200 families surveyed have saved anything for college, only 26% of them use 529 or other education-specific savings plans.   

The end of the year is often a time for parents to reflect on their spending priorities and now would be a good time for firms to highlight their 529 plans. As we noted in one of our Mutual Fund Monitor reports from last December that looked at Online 529 Content, there are a number of best practices for doing this:

• Make content easily accessible – 529 savings accounts have become a preferred method for college savings. As such, firms should make this information easily accessible via a separate college planning tab to house educational and product related information. This is not only valuable for current clients, but is also a way to attract prospective investors.
• Promote offerings while educating investors about planning issues – While educating investors about the potential benefits of a 529 college savings plan, firms should be sure to simultaneously promote these products. Investors can learn about the importance of planning for college, as well as how a given firm’s plan can help them meet their savings goals. Space on a firm’s public homepage, especially during "back-to-school" season, is an ideal way to jumpstart parents’ thoughts toward saving for their children’s future.
• Make the content intriguing – Firms can appeal to customers by adding video presentations, colorful charts and interactive tools such as personalized calculators to make the information easier to digest and more enjoyable.
• Address grandparents, other family members and friends – Parents are not the only investors that can contribute to a college savings plan; grandparents, friends and other investors are also eligible. Unfortunately many firms ignore these key groups and limit their opportunity to pull in additional assets. Firms should promote the fact that anyone can contribute to a 529 plan and that it acts as an ideal legacy building tool, especially for grandparents.
• Highlight why a specific plan is unique – Most 529 plans have federal mandates that make them difficult to tell apart. Whenever possible, firms should highlight the unique benefits of their managed plans.