How much should I save monthly for my child's college?

For in-state public 4-year tuition (target $265K in 2044 dollars at 5% inflation): $430/month from birth, $610/month at 5% return assumption. For private college tuition (target $670K): $1,100/month from birth. Starting later increases the monthly requirement substantially.

Why is 5% the right tuition inflation assumption?

Tuition inflation has run 4-6% annually for the past 30 years, well above CPI. The College Board's annual tuition surveys show this trend has been consistent. Using 3% (general CPI) as the tuition assumption typically underestimates future cost by 30-50%.

Should I prioritize college fund over retirement?

No. The standard advice (still correct): retirement first. You can borrow for college; you can't borrow for retirement. If retirement is on track AND emergency fund is solid AND high-interest debt is paid down, then college fund makes sense as the next priority.

Start at Birth: $430/mo Covers In-State Public. Start at Age 8: $1,250/mo.

The Conversation Nobody Has at the Hospital

The day your child is born, you are handed a baby, a stack of paperwork, and approximately zero useful financial guidance. Most parents think about college savings in vague terms — “we should probably start that soon” — and then life gets busy.

“Soon” often becomes age 5. Sometimes age 10. Sometimes never.

Here’s what that delay costs, in actual dollars.

The Target: $120,000 by Age 18

College costs vary enormously — in-state public university through graduation runs roughly $80,000–$130,000 today, and costs have historically risen at 4–5% annually. Let’s use $120,000 as the target, in today’s dollars, assuming a 6% annual return on invested contributions.

What waiting actually costs

Same $120K target, four different start ages, all using 6% annual return:

Start age	Years to compound	Monthly needed	Total contributions	”Tax” of waiting
Birth	18	$379	$81,864	baseline
Age 3	15	$452	$81,360	+$73/mo, similar total
Age 5	13	$548	$85,488	+$169/mo, +$3,624 total
Age 8	10	$763	$91,560	+$384/mo, +$9,696 total
Age 10	8	$996	$95,616	+$617/mo, +$13,752 total
Age 12	6	$1,392	$100,224	+$1,013/mo, +$18,360 total

The pattern: each year of delay costs roughly $50-100/month in additional contribution requirement. By age 10, the monthly burden has nearly tripled and many families can’t actually fund it. The goal slips further from there.

The lump-sum equivalent shows the same story even more clearly: a single deposit at birth of $6,820 today compounds to $120,000 by year 18. The same target requires $9,434 at age 5, $15,000 at age 10, $22,500 at age 14.

The “Wait Until We Can Afford It” Trap

This is the most common rationalization, and it compounds into a painful irony: the year you’re “not ready” ends up being the most expensive year in the whole savings journey.

If you contribute nothing in year one and then start at age 1 instead of at birth, you need to contribute roughly $13 more per month for the next 17 years to reach the same target. That’s $2,652 in extra contributions — more than the contribution you skipped.

Every year you delay costs you more than the contributions you avoided.

The 529 Tax Advantage (Don’t Leave This on the Table)

A 529 college savings plan isn’t just an investment account — it has meaningful tax benefits that amplify everything above.

Most states offer a state income tax deduction for 529 contributions. For a family contributing $5,000/year in a state with a 6% income tax, that’s a $300/year tax savings — essentially free money that goes toward the goal.

Growth inside the 529 is tax-free, and withdrawals for qualified education expenses are also tax-free. For an account that compounds for 18 years, tax-free growth adds up to a meaningful sum — potentially tens of thousands of dollars compared to a taxable account.

The Simple Takeaway

There’s no month in which starting is more expensive than waiting. The question is never “should we start a college fund?” — it’s always “how much can we put in this month?”

Even $50/month at birth beats $500/month at age 12. Start small, start early, increase as you can.

Where partial funding is the right plan

High-cost-of-living households where 100% funding isn’t realistic. Funding 50% of in-state public tuition while encouraging the kid to work / take some loans is a defensible plan that doesn’t sacrifice retirement.
Multiple kids. $430/month per kid × 3 kids × 18 years is a meaningful budget item. Many families fund partial coverage and accept that kids contribute through scholarships, work, or modest loans.
Retirement not on track. Don’t divert retirement contributions to college fund. The kid has 40+ years of working life to repay loans; you don’t have 40+ years of working life to rebuild retirement.

When 529s aren’t the right vehicle

Uncertainty about whether kid will use the funds for education. 529 funds withdrawn for non-education use face a 10% penalty plus income tax on gains. Roth IRA contributions are more flexible if you’re unsure.
Higher-income families subject to financial-aid considerations. 529 assets count against need-based aid. For families that might qualify, the math gets more complex.

Open the College Savings Calculator → and run your specific target (public/private/elite) + current age + return assumption. The monthly number is the answer to “when do we start” — the answer is almost always “now.”