Building your child’s education fund, one brick at a time
Long version
Every solid house starts with a good blueprint and a strong foundation. Saving for a child's education is very similar.
College costs can seem daunting. In addition to tuition, you'll need to account for housing and food, books and supplies, transportation and other expenses. The average annual budget at an in-state public university runs around $30,990 today, and a private school is $65,470 according to the College Board. While most families won’t pay a college’s list price, you’ll still want to start saving as early as possible to be ready when your child is.
Lay the foundation early. You don’t have to wait until you have the perfect set of plans to start building. There are specific accounts designed to save for education and some do not require a minimum opening deposit. Setting up automatic recurring contributions, even modest ones, lets you build steadily over time without requiring constant attention.
As your child ages, look for ways to redirect expenses you no longer have towards the build. For example, daycare costs, which can exceed $1,000 a month, can be shifted into a college savings account once your child enters school. Tax refunds and annual bonuses make excellent additional contributions. And others can pitch in – instead of birthday or holiday toys, ask grandparents or relatives to contribute directly to a college savings account.
Know the size of the house you're building. Families saving for community college followed by two years at a public university might target around $65,000. Those aiming for four years at a public school are looking at roughly $100,000. Whatever the goal, plan for education inflation of about 4% annually, which can roughly double costs over 18 years.
You don't have to source all the building materials yourself. Scholarships, grants, student loans and income from part-time work are all legitimate ways to help finish the structure.
Don't let one project consume the whole budget. One risk for parents is pouring so much into the college fund that the retirement fund goes neglected. Remember, loans and grants exist for college, but not for retirement. Striking the right balance may mean targeting a more affordable school, planning to cover only a portion of costs or adjusting retirement timelines slightly.
Choose the right building materials. For many families, a 529 plan is the right foundation. Earnings grow tax-free, distributions are federally tax-free when used for qualified education expenses, and many states offer additional income tax deductions for contributions. Even better, anyone – such as grandparents or friends – can contribute.
Additionally, qualified expenses for a 529 plan go beyond tuition and cover books, computers, internet access, room and board, and more. Vocational and trade schools often qualify, too, opening the door to careers in skilled trades, healthcare and technology.
No contractor builds alone. A knowledgeable financial advisor can help you draw up a realistic blueprint and make sure the college project doesn't crowd out the rest of your financial future. The earlier you break ground on that conversation, the stronger the structure will be.
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This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member SIPC
Number of words: 501
Short version (radio/print/online)
College costs can feel overwhelming — four years at a public university run around $120,000 according to the College Board 2025. But you don't need a perfect plan to get started.
There are savings accounts specifically to save for education. Many offer tax advantages and don't require a minimum opening deposit.
One type of account is a 529 college savings plan, and it's a smart choice for many. Earnings grow tax free, and distributions for qualified education expenses are federally tax free. And anyone — including grandparents — can contribute.
One easy way to save is to set up automatic contributions and let time do the heavy lifting.
When your expenses change – such as the end of daycare costs — redirect that money toward your education fund. Tax refunds and bonuses help, too.
Just don't let college savings crowd out your retirement fund. Loans exist for college but not for retirement.
It's never too early to begin saving for your child's education.
This content was provided by Edward Jones for use by (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone#). Member SIPC
Number of words: 158 (excluding FA’s name, address/phone number)