Few parents are using 529 college savings plans to plan for their children's education, according to a recent survey by Aegon Institutional Markets of The Hague. With a majority of the 500 respondents in the survey saying that principle preservation is very important, it appears that many parents are turning to conservative savings vehicles instead.
The majority, 61% of respondents, said they are using bank savings accounts as their main savings vehicle. Other popular vehicles included mutual funds (44%), U.S. savings bonds (37%), stocks (30%), money market accounts (23%), certificates of deposit (23%) and education IRAs (21%). Only 4% said they are using 529 plans.