Southridge Capital Management. 529 planning can be described as that state sponsored that plan parents and guardians use to save up money for their children’s future college education from an early age. The 529 planning works in different ways that enables parents to choose the plan that is suitable for their current needs and wants. So how does the 529 planning actually work? First you as the parent of guardian will choose which plan works best for you. Choosing the best 529 plan can be done from any state as the plan does restrict one from choosing within their residential state only but also from other state.