4-year total costs (2024-2025): Public in-state $115,000 ($28,750/year), Public out-of-state $190,000 ($47,500/year), Private college $241,000 ($60,250/year).

Use the 1/3-1/3-1/3 rule: save 1/3, pay 1/3 from income, finance 1/3.

For in-state public, save $38,000 total ($200-400/month for 10-18 years depending on child age).

529 plans offer federal tax-free growth and withdrawals for qualified education expenses. 38 states offer state tax deductions: $10,000/year deduction saves $300-700 annually in high-tax states.

Contributions grow tax-free - $10,000 invested at age 2 becomes $30,000 by age 18 (6% return).

No federal contribution limit, but $18,000/year per beneficiary avoids gift tax reporting.

Start as early as possible to maximize compound growth.

Starting at birth: $250/month reaches $80,000 by age 18 (6% return).

Starting at age 10: $660/month needed for same $80,000.

Starting at age 15: $1,850/month required.

Every 5 years delayed roughly triples required monthly contribution.

Even small amounts ($50/month) from birth make significant difference.

Historical college cost inflation averages 5-6% annually, double general inflation (2-3%).

Conservative planning uses 5% for public schools, 5.5% for private.

Example: $30,000/year today becomes $49,000 in 10 years at 5% inflation, $80,000 in 20 years.

Recent trends (2020-2024) show slower 3-4% growth, but long-term planning should assume 5%.

No - prioritize retirement first using the oxygen mask principle.

You can borrow for college but not retirement.

Recommended order: 1) Employer 401k match (free money), 2) Emergency fund (3-6 months), 3) Max Roth IRA, 4) College savings in 529, 5) Additional retirement.

Aim for 15% retirement savings before aggressive college funding.

Multiple options exist for excess 529 funds: Change beneficiary to another family member (siblings, parents, cousins), use for graduate school, roll over $35,000 lifetime to beneficiary Roth IRA (starting 2024, account must be 15+ years old), withdraw with 10% penalty on earnings only (not contributions).

Recent SECURE 2.0 Act provides more flexibility.