College Planning

Tips for Starting Your Baby's College Fund

This article lists several points that parents should consider when saving for their baby's college tuition, including estimating future college costs and starting a 529 college plan.

Saving Tips for Baby's College Tuition

Did you know that you can begin contributing to your baby's college fund even before they're born? But before you start putting money away for your baby's education, you should understand exactly how much it will cost, how you plan to pay for it, and how to save as efficiently as possible.

Ensure everyone is on the same page.

Considering a college savings fund for your baby? You and your spouse may have differing opinions on who should be responsible for the full cost of your child's education. Maybe you had to pay your own way through college, with little or no financial assistance from your parents. Or perhaps your spouse was fortunate enough to receive a full academic scholarship. Talk about your own college experiences and decide how you intend to provide for your child's college dreams. Will you expect them to contribute? If so, how much? How much do you intend to contribute?

Understand what college will cost in 18 years

Recent estimates from sources like CNBC and U.S. News & World Report indicate that with an average of 5 percent inflation every year, college tuition for a public, in-state university in the year 2030 could easily cost over $40K per academic year, including room and board. The College Board's website has a handy College Cost Calculator that allows you to estimate the cost of your child's future college education (public or private), and tells you what you'll need to save in order to cover the percentage of the costs that you intend to cover yourself.

Start a 529 College Savings Plan.

The 529 plan is a savings plan that is specifically designed to help families set money aside for future education expenses. The 529 is a particular favorite with parents because it comes with tax breaks and benefits that you can read more about on These plans are offered by almost every state and many educational institutions, and they can be used at any qualified college, university, vocational school, or postsecondary education institution in the nation. Talk to your local bank, credit union, or financial adviser about your options.

Set up an account that allows loved ones to contribute to your child's 529.

You may be surprised by how many of your friends and family members will want to make a direct contribution to your baby's education. Websites like and allow them to make a direct donation to your child's 529 via check or credit card for a nominal fee.

You can learn more about the benefits of 529 College Savings Plans and the types of financial aid available to parents and students in the Protective Learning Center.

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Baby's College Fund

Putting away money for your baby's college fund should start as soon as possible. But before you start saving for your baby's college fund, you need to know exactly how much it will cost, how you plan to pay for it, and how to begin saving for your baby's college fund. For more information, visit our learning center.