A Living Legacy: How to Start Planning for College Costs Today

Why college planning matters

Helping a child or grandchild pay for college is more than a financial decision, it’s a values-driven one. It’s a chance to show your commitment to learning, personal growth, and opportunity. And with the appropriate plan in place, it’s also a way to leave a lasting legacy you can watch unfold while you’re here to enjoy it.

As you probably know, the cost of education continues to rise. According to recent projections, the average four-year tuition bill for a public in-state university could reach $33,880 per year by 2035, and more than $82,000 per year for a private institution.¹

Planning ahead doesn’t just help you manage those costs. It also gives you confidence, more flexibility, and a chance to share your values with the next generation.

Whether you’re building an education fund from scratch or refining your existing strategy, a thoughtful plan can help you avoid stress and create a legacy you can be proud of.

Practical steps to start saving for your child’s education

Planning for your child’s future isn’t complicated - you just have to start! But here are a few important things to consider:

1.Think about the full scope of education you want to support.

Will you be funding just college expenses? Or do you also want to plan for private elementary or secondary school tuition? Deciding early helps you estimate how much you’ll need and how soon you'll need it.

2.Coordinate across generations.

If you know your parents or other family members want to help, it’s important to have an open conversation early. Understanding who plans to contribute (and how) can help you avoid duplicate efforts and build a more efficient savings strategy.

3.Build education contributions into your budget.

Once you have a sense of your goals and family support, start mapping out your contributions. The earlier you can begin funding a 529 plan, the better. Ideally, you'd start making contributions as soon as your child or grandchild is born and has a Social Security number. Starting early means more time for your investment to grow, and more time to ride out the normal ups and downs of the market.

Why 529 plans are the go-to option

When it comes to saving for college, 529 plans are one of the most effective (and often underestimated) tools available.

Most people know they offer tax advantages, but the real power of a 529 goes far beyond that. These plans are flexible, efficient, and full of underused features that make them a smart part of any family’s long-term financial strategy.

Here’s why we love them:

• Tax-free growth on your investment
• Tax-free withdrawals for qualified education expenses
• No income restrictions for contributions
• High contribution limits—up to $190,000 in one year for a married couple, using the 5-year election
• Transferable balances from one child or grandchild to another (even to cousins or other family members)
• Control of the account stays with the grantor
• Legacy benefits like estate tax advantages and intergenerational flexibility
• New perks from the SECURE Act 2.0, including the ability to roll leftover funds into a Roth IRA under certain conditions

What can you use a 529 plan for? A lot more than just a traditional four-year college. Qualified expenses include:

• Private K-12 tuition (up to $10,000 per year)
• Higher education tuition, books, housing, and tech
• Registered apprenticeship programs
• Some student loan repayments
• And now, eligible rollovers to Roth IRAs for the beneficiary (subject to conditions)

That last point is a big one. A lot of families hesitate to use 529s because they’re unsure whether their child will attend college, or what might happen if they earn a scholarship. But the IRS has helped address those concerns. Under the new rules, unused 529 funds can be rolled into a Roth IRA for the beneficiary’s future retirement savings, giving those dollars continued growth potential.

And if one child doesn’t need the funds? You can transfer them to another child, grandchild, or qualifying family member, without penalty and without hitting a dollar limit on the transfer itself.

In short: a 529 plan doesn’t lock you into a narrow path. It opens up a wide range of options to support your family’s education, flexibility, and long-term financial well-being.

College planning as a living legacy

A lot of people think about legacy in terms of what they’ll leave behind. But with education planning, you can help your children or grandchildren succeed and experience the joy of watching that impact unfold.

Watching your child or grandchild thrive because of the doors you helped open is incredibly rewarding. It also offers a chance to teach them about the values that matter to you: responsibility, learning, ambition, and the importance of planning ahead.

Need help getting started?

You also don’t have to go it alone. We help families navigate the complexities of saving for college, coordinating across generations, and making smart financial decisions that serve everyone involved.

At Granite Wealth Management, we regularly guide families through the process of education planning, making it part of a broader strategy that supports your goals and values.

Want to talk about education savings, 529 plans, or multi-generational planning? We’re here to help, and we hope you’ll reach out.

¹Trends in College Pricing and Student Aid, collegeboard.org (Projections by Wells Fargo Advisors, November 2024)

Please consider the investment objectives, risks, charges, and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your financial advisor. Read it carefully before you invest. Non-qualified withdrawals are subject to federal and state income tax and a 10% penalty.