September is National College Savings Month. The pursuit of higher education, whether through a university, college, technical, or vocational program, typically requires substantial funding.

Securing resources to pay for tuition and related expenses is crucial to avoiding massive educational debt that often burdens early and mid-career earners.

The good news:  Starting small, saving smart, and using the right tools is key to leveraging all available resources.

Start Early (Even If It’s Just a Small Amount)

When it comes to college savings, time is your best friend. Studies show that families who start early, even with small amounts, end up saving more overall. Why? Because money grows over time thanks to compounding, and because setting aside even $25 a month builds the habit.

One study found that youth are more likely to pursue higher education if their family has savings specifically set aside for that purpose. Even a modest fund signals that continued education is possible and expected.

Pick the Right Savings Tool

Here’s where research and real-life finance meet:  dedicated college accounts like 529 plans can work best for most families.

• A 529 investment grows tax-free, and withdrawals for tuition, books, and even housing expenses aren’t taxed.
• Age-based investment portfolios can be strategically managed to become more conservative as a child nears college age.
• 529 funds can now roll into a Roth IRA under certain conditions – so you don’t lose it if your child’s path changes.

Other options, like Coverdell ESAs, custodial accounts, or even a regular brokerage account, have pros and cons. Nonetheless, researchers consistently find that families with 529s save more, and stick with their plan, because the money is “earmarked” for education.

Save What You Can, Not What You “Should”

Financial planners often recommend aiming to save about 50% of expected college costs, with the rest covered by scholarships, grants, work-study, and loans.

That might still sound like a lot, and for many folks, it is. Remember, however, that something is always better than nothing. Even a small fund can reduce future debt and make a huge psychological difference for a future wage earner.

Leverage with Cost Cutting

Finally, remember that saving is just one piece of the puzzle. Programs like dual enrollment (earning college credits in high school) can save families tens of thousands of dollars. Scholarships, community college transfers, apprenticeships, work-study, and living at home for part of college are all ways to stretch your savings further.

Takeaway

College savings need not feel overwhelming. By starting early, channeling contributions into dedicated tools like 529s, contributing thoughtfully even if the amounts are modest, and pairing savings with smart cost-cutting moves, families can secure their children’s future and reduce the likelihood of crippling educational debt.

Finally, consult a trusted tax or financial planner to ensure that savings decisions are both reasonable and maximized for current and future needs.

References:

“The Basics of 529 College Savings Plans”. Better Investing. http://bit.ly/4nkY7vI. Accessed 09 Sept 2025.

“529 Plans: Questions and Answers”. IRS.gov. http://bit.ly/46sUsGF. Accessed 09 Sept 2025.

“Learn the ABCs of 529 Education Savings”. Investor.gov. http://bit.ly/3VFseSV. Accessed 09 Sept 2025.

“Students Are More Likely to Attend College if They Believe Family Can Afford to Pay.” National Center for Education Statistics. http://bit.ly/42l0Op2. .  Accessed 09 Sept 2025.

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