{"id":9015,"date":"2018-08-28T09:05:52","date_gmt":"2018-08-28T16:05:52","guid":{"rendered":"http:\/\/www.wealthfront.com/blog\/?p=9015"},"modified":"2025-12-04T13:24:21","modified_gmt":"2025-12-04T21:24:21","slug":"saving-for-college-questions","status":"publish","type":"post","link":"https:\/\/www.wealthfront.com/blog\/saving-for-college-questions\/","title":{"rendered":"Saving for College: 4 Big Questions Every Parent Needs to Consider"},"content":{"rendered":"

Note: Since this post was first published, changes to the law have expanded the qualified expenses that 529 plans can be used for. For more information, see our <\/span><\/i>help center<\/span><\/i><\/a>.<\/span><\/i><\/p>\n

You already know the cost of college<\/a> is rising: It increased 3.6% last year, nearly double the rate of inflation<\/a>.<\/p>\n

What you might not know? It\u2019ll cost an estimated $302,700 to send today\u2019s newborns to a four-year private college, according to\u00a0Wealthfront research<\/a>. To cover that amount, you\u2019d need to save $980 per month \u2014 for 18 years straight.<\/p>\n

Parents of younger kids: you might be thinking, \u201cWe\u2019re focused on K-12 right now; college is so far away!\u201d But the truth is, if you have children \u2014 or plan to \u2014 it\u2019s never too early to start thinking about college.<\/p>\n

Below, a few Wealthfront parents share their perspective on the things you should contemplate now if you have kids who may be college-bound in the future.<\/p>\n

1. Will you contribute to your child\u2019s college education?<\/h2>\n

There\u2019s no right or wrong answer to this question; for many parents, their philosophy traces back to their own experiences.<\/p>\n

Maybe you want to cover the entire cost, because that\u2019s what your parents did, or because you feel grateful you\u2019re in the position to do so. Take Courtney Burrill, a soon-to-be mom on Wealthfront\u2019s Client Services team, for example. As a first-generation college student, she worked several jobs to graduate without any loans. Now her goal is to cover 100% of her children\u2019s college costs. \u201cCollege has been world-changing for me,\u201d she explains. \u201cEducation is our top priority; we would make sacrifices to afford it for our children.\u201d<\/p>\n

Maybe you want to cover most of the cost, so your kids can learn about money without being burdened by student debt. Although Wealthfront Director of Research Celine Sun<\/a> worked a part-time job through college, her parents paid for the majority of her education. \u201cI think I will cover the tuition and leave living expenses up to my children,\u201d she says. \u201cI want them to work hard, but not have high loans.\u201d<\/p>\n

Or maybe you want your kids to cover the costs themselves, with scholarships, loans, or a part-time job, because that\u2019s how you did it\u00a0\u2014<\/span> and you managed just fine. Wealthfront\u2019s Senior Product Manager Tyler Hogge and his wife used athletic and academic scholarships to pay their own way through school. Though they know those aren\u2019t guaranteed, he says: \u201cWe always joke our kids will get scholarships so we don\u2019t have to stress about [tuition]\u2026 We think children should feel a sense of responsibility to cover most of college if they can.\u201d<\/p>\n

Whatever decision you make, the important thing is to think about it now (yes, even if your child is still sucking on a teething toy like it\u2019s their job). Because, if you want to cover part or all of your children\u2019s education, you need to start saving today<\/a>.<\/p>\n

\"Wealthfront<\/p>\n

2. If you plan to contribute, how will you save?<\/h2>\n

Just as with retirement, the earlier you start, the better off you\u2019ll be. The easiest way to save for college is with a 529 plan<\/a>, an investment account created specifically for education expenses.<\/p>\n

Here\u2019s what makes 529s an attractive option for parents of all income levels:<\/p>\n