College Planning

Tuition, fees, room, and board have risen steadily for decades, and four years at many colleges now represents a six-figure commitment. Those numbers feel overwhelming viewed all at once.

Planning ahead transforms that single intimidating number into a manageable monthly one.

A 529 plan is a tax-advantaged account designed specifically for education savings. Contributions grow tax-deferred, and withdrawals used for qualified education expenses are generally free from federal income tax.

Many states offer additional benefits for residents, and account owners keep control of the funds — an important distinction from custodial accounts.

529 plans aren't the only path. Custodial accounts, Coverdell education savings accounts, financial aid, scholarships, and student loans all play roles in many families' plans.

The right mix depends on your goals, timeline, and how much flexibility you want if plans change.

How you save can affect aid eligibility. Parent-owned 529 accounts are generally treated more favorably in financial aid formulas than assets held in a student's name.

Structuring savings thoughtfully can preserve options — one more reason the account type matters, not just the amount.

A common mistake is prioritizing college savings at the expense of your own retirement. Students can borrow for tuition; you cannot borrow for retirement.

A balanced plan funds both goals, and when dollars are limited, retirement generally takes priority — which is ultimately a gift to your children, too.

Starting when a child is young gives compounding years to work and keeps contributions smaller. Starting later simply means being more intentional: higher contributions, realistic school targets, and a stronger focus on aid and scholarship strategies.

Either way, a written plan beats an anxious guess.