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 fund your Ohio 529 account.
Save with the extended Ohio’s Sales Tax Holiday!
The State of Ohio has extended its traditional sales tax holiday! Ohio’s 2025 sales tax holiday now begins at midnight on Friday, Aug. 1, and ends at 11:59 p.m. EST Thursday, Aug. 14. Families can make tax-free purchases for many things up to $500 except for some specific items as outlined the Ohio Department of Taxation.
This extension allows you to shop for the best prices for items on your child’s school supply list with back-to-school sales and no state sales taxes on those items! You can also buy their new school clothes and many other things tax-free, including computers, books, home decor to decorate their dorm room, and sporting goods as they get ready to join their school’s sports teams. You can then deposit these savings into your child’s tax-free Ohio 529 account to continue saving for their future college and career training.
The sales tax holiday is also a great “money moment” to teach your children about delayed gratification, a valuable life skill. If you give your children a certain amount to buy their own school supplies, then this can be a lesson on how to stretch their dollars. 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. 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 also talk about putting the savings in their Ohio 529 account. Add a little extra encouragement to save by matching their 529 contribution.
Save with disappearing expenses
After you take advantage of Ohio’s sales tax holiday, there are more ideas to build the savings in your Ohio 529 account, like disappearing expenses.
Disappearing expenses are those costs that are temporarily part of your family’s budget. For instance, preschool costs are a huge disappearing expense. Once your child starts all-day kindergarten or first grade, you can turn this former preschool, day care, or summer camp expenses into contributions to your 529 account. This way, you can now support your child’s educational needs in the future. Other disappearing expenses for a baby or toddler are 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 be 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 these dollars to your child’s 529 plan. As these costs are already in your household budget, there is no change in income when you turn this expense into an Ohio 529 contribution.
Save with automatic contributions
Another simple and easy way to build up your 529 savings is with automatic recurring contributions. You prioritize your child’s future college or career training, instead of contributing what remains from your paycheck. 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.
Some employers also offer direct deposit, where a portion of your after-tax pay goes 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. If you sign up with Upromise now, you can receive a $5.29 bonus. Additionally, you can earn another $25 in bonus rewards when you link your account with Ohio Direct 529 Plan. Once you reach $50 in your Upromise account, you can transfer those funds to your Ohio CollegeAdvantage Direct 529 account.
To see how Upromise can help build your Ohio 529 college savings account, a long-time CollegeAdvantage family shared their Success Story on how Upromise added to their son’s Ohio 529 account.
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 future college and career training —with a contribution to their 529 account. With Ugift, it’s simple for anyone to contribute to your Ohio 529 Plan account with needing the account number. 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 the college and career training savings grow even more.
It's never too late to start saving
If you haven’t started to save for college, it’s never too late to open an account with Ohio’s 529 Plan. Every dollar saved is a dollar that won’t have to be borrowed. Even small 529 plan deposits can grow through the power of compound interest and tax-free earning, with tax-free withdrawals for qualified higher education expenses. If you have been saving with Ohio 529, take these additional steps and watch how your account grows!
To set goals for how much to set aside in Ohio 529 for your child’s future college and career training, our online tools can help to start to shape your savings plan.
Learn, plan, and start with Ohio 529 today at CollegeAdvantage.com.
This article was originally posted in July 2020 and has been updated to reflect new information for 2025.
* 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's 529 Plan, CollegeAdvantage account are subject to a $50 minimum.
Upromise and the Upromise logo are registered service marks of Upromise, LLC.
