You are unlikely to experience financial loss in a 529 plan. Even though the primary goal of a 529 plan is to prepare for higher education or college, the money you save is entirely yours. If there is any remaining money, you can transfer it to another beneficiary who meets the criteria for a member of your family. You might choose to utilize it on your own children, your nephews, your younger siblings, or even your nieces. However, you will be required to pay a 10% penalty and some taxes on the income produced. You may also withdraw any scholarship rewards without penalty or use the money for other unrelated purposes.