Most parents and grandparents still dont know about 529 plans, according to a poll commissioned by AllianceBernstein Investment Research and Management. The Harris Interactive poll showed that 64% of parents and 65% of grandparents were completely unaware of this type of college savings plan.
However, once the benefits of 529s were explained to them, 68% of parents and 44% of grandparents said they were more inclined to use them to help save for college. Lack of familiarity was the No. 1 reason that respondents, 44% of those polled, were not using a 529 plan; lack of discretionary income came in at a distant second, with only 15% of responses. Only 10% said it was because they were already using another vehicle.