Whether you are outside to enjoy the sunshine or inside to avoid the humidity, this summer is the perfect time to level up your savings with Ohio 529 CollegeAdvantage. If you would like some saving suggestions, here are some ideas and steps you can take this summer to grow your Ohio 529 account.
Save with Ohio’s sales tax holiday!
The Ohio sales tax holiday begins at midnight on Friday, Aug. 7, and ends at 11:59 p.m. EST Thursday, Aug. 9. The back-to-school sales tax holidays helps families save while buying school supplies for the new school year. The sales tax exemption will apply to clothing $75 or less, school supplies at $25 or less, and school instructional material priced at $20 or less.
This savings holiday allows you to shop for the best prices for items on your child’s school supply list with back-to-school sales and no Ohio sales taxes on those items! You can also buy their new school clothes and many other items tax-free, including computers, books, steel-toed shoes, and sport uniforms and equipment. You can then deposit these savings into your child’s tax-free Ohio 529 account to continue saving for their education after high school.
The sales tax holiday is also a great “money moment” to teach your children about delayed gratification. Look for the current price of items. Next, figure out the sales tax—Ohio’s sales tax rate is 5.75%—for these items. Then you can see if the stores will offer discounts during the sales tax holiday weekend. Explain to your child that if they wait, they can save money with lower prices and no sales tax. Together, you and your child can see the real financial benefit of waiting for the right time to make a purchase. You can then talk about putting the savings in their Ohio 529 account.
Need more ideas on how to find easy ways to keep adding to your 529 account? Here are some other options.
Save with disappearing expenses
Disappearing expenses are those costs that temporarily consume part of your family’s budget, like preschool costs. Once your child starts all-day kindergarten or first grade, you can turn these former childcare expenses into contributions to your 529 account. This way, you can continue to support your child’s education by saving for their future college and career training. Other disappearing expenses can include baby formula and diapers. Once your child outgrows the need for these items, you can re-direct those dollars to your Ohio 529 account.
Disappearing expenses can also include car loans, medical or dental bills, credit card debt, or even your own student loan payments. Once you have paid off these debts, re-direct those dollars to your child’s 529 plan. As these costs were already included in your household budget, there is no change in income if you turn these expenses into an Ohio 529 contribution.
Save with automatic contributions
Another easy way to build up your 529 savings is with automatic recurring contributions. You can set these automated deposits according to your payday or monthly contribution schedule. Even small contributions to your 529 account can add up to valuable savings.
Many employers also offer direct deposit, where you can direct a portion of your after-tax pay directly into your Ohio Direct 529 account. To learn more about establishing direct deposit, this article will guide you through the simple steps to take. Payroll contributions make it easier to meet your college-saving goals.
Save with Upromise
Upromise* helps you save for your child’s future education while shopping. Upromise is a free rewards program that offers its members cash back as you shop online, dine out, buy groceries, and book flights and hotels.
When you connect your debit and/or credit card to your Upromise account, you can start earning rewards with your everyday shopping, maybe even during a Sales Tax Holiday. You can then link your Upromise account to your Ohio CollegeAdvantage Direct 529 Plan account to deposit these rebates. Participating businesses include online retail stores through Upromise.com and 20,000 restaurants nationwide at which Upromise members can earn cash back.
Save with loved ones’ contributions
Family and friends want to celebrate the big events in your child’s life. If they ask for gift ideas, share that they can help with another big milestone in your child’s life – their education after high school —with a contribution to their 529 account.
With Ugift, it’s simple for anyone to contribute to your Ohio 529 Plan account without using your account number(s). The quickest and easiest way to pass along your child’s Ugift code is with the ReadySave 529 app, which you can access as an Ohio 529 CollegeAdvantage account owner. At the bottom of every page is an Ugift icon. Click on the gift symbol to view your Ugift code which you can send immediately as an invitation via texts, emails, and Facebook/Instagram chats from your phone. With the Ugift code, friends and family can visit Ugift529.com to make their electronic contribution. If the gift giver is an Ohio resident, they can deduct their Ohio 529 contributions up to $4,000 from their state taxable income.
You can also now send yourself or loved ones reminder emails about Ohio 529 contributions for special occasions, like birthdays, graduations, and more. This simple nudge can help your 529 savings grow even more.
Since 1989, Ohio 529 CollegeAdvantage has been helping families across the nation save for their children’s education after high school. Ohio 529 covers qualified costs at any accredited four-year college or university, two-year community college, trade or vocational school, certificate or credential program nationwide that accepts federal financial aid, as well as any apprenticeship approved by the U.S. Labor Department. Learn, plan, and start for as little as $25 today at CollegeAdvantage.
This article was originally posted in July 2020 and has been updated to reflect new information for 2026.
* Upromise is an optional program offered by Upromise, LLC, is separate from the Ohio's 529 Plan, CollegeAdvantage, and is not affiliated with the Ohio's 529 Plan. Separate terms and conditions apply to the Upromise program, and you will be required to read and agree to them at sign-up. Participating companies, contribution levels, and terms and conditions are subject to change at any time without notice. Transfers from Upromise to an Ohio 529 CollegeAdvantage account are subject to a $50 minimum.
Upromise and the Upromise logo are registered service marks of Upromise, LLC.
