Trump Accounts have a 'tax-advantaged' alternative, CFP says — yet few families are capitalizing

President Donald Trump onstage at the Treasury Department's Trump Accounts Summit, in Washington, Jan. 28, 2026. Kevin Lamarque | Reuters Starting in July, Trump Accounts will give parents a new option to save and invest for their children's future. But other tax-advantaged savings and investment vehicles already exist — and are often underutilized. For example, only about 23% of parents currently use 529 college savings plans , according to a recent report by Edward Jones , a financial services firm. Saving for a child's education is a top financial priority, "yet it's never priority No. 1," said certified financial planner Andy Esser, an advisor at Edward Jones. Still, for families exploring their savings options ahead of the July 4 launch of Trump Accounts, "529s are a good fallback — if not one of the better vehicles — because of the tax advantages," Esser said. How 529 plans work Savings in a 529 plan grow tax-free, and withdrawals for qualified expenses are tax-free. Plus, you may get a state tax deduction or credit for your contribution. Contributions to 529 plans generally are invested in mutual funds that contain a mix of stocks, bonds and cash-like investments. Often, that mix becomes more conservative as your child ages.