Saving for College: Three Reasons to Start Early

college savings

Saving for College: Three Reasons to Start Early

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Expectant parents have a million things on their mind, including baby names, nursery décor, and childcare arrangements. But how many are thinking about college?

Who really wants to think about sending their bundle of joy off to the dorms one day? Yet the reality is that 18 years is a relatively short time horizon when it comes to saving. Think about your retirement. Many of us started saving in a 401k when we were around 25 years old and plan on working until we’re 70 – giving us 45 whole years to save.

And just like retirement planning, the earlier you start to think about paying for college, the better. Whether you’re a brand-new parent or a seasoned veteran who’s been procrastinating, here are 3 compelling reasons to get started:

  • Kids are going to get more expensive: and so is their education.
  • Start sooner and save more: you get more time to grow your money. If you save in a 529 plan early, you get a greater benefit from tax-free growth.
  • Time to plan and explore options: some parents have a solid idea where they want their child to go. Some don’t. Either way, plan ahead by having a target school in mind. That way, you can calculate how much you may need to save over 18 years.


Anna Sergunina
Anna Sergunina

I'm Anna Sergunina, CFP®, President & CEO at MainStreet Financial Planning, Inc. My passion lies in serving others through financial planning, helping clients achieve their dreams like buying a home, saving for education, or retiring early. With over two decades in the industry and a CFP designation since 2009, I'm dedicated to excellence and continuous growth. Beyond work, I cherish moments with my son Liam, prioritize self-care, and engage in content creation for my Money Boss Parent Podcast and Money Library blog.

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