Graham took his first steps three weeks ago.
I was sitting on the living room floor — full focused and playing with Graham — and he pulled himself up on the coffee table, turned toward me, and walked four wobbly steps before dropping into my arms. I cried. Wes clapped. Graham laughed.
It was one of those moments that makes every hard thing about this year feel worth it. The closed business, the financial recalculation, the nap-time hustle, the guilt — all of it, worth it, in four wobbly steps.
And later that night, after Graham was asleep, I opened our 529 account and made a contribution. Not a huge one. But a real one. Because watching your child take his first steps does something to you — it makes the future feel suddenly real. Not someday. Not eventually. Real and coming fast.
Today is 529 Day — May 29th — and I want to talk about something most new parents know they should do but haven’t gotten around to yet. Setting up a college savings plan for your child. Not because the financial mechanics are complicated (they’re not). But because the hardest part is actually starting — and I think telling you our story might make that easier.
What Is a 529 Plan and Why Should You Care?
A 529 plan is a tax-advantaged savings account designed specifically for education expenses. It’s named after Section 529 of the Internal Revenue Code, and it’s one of the most powerful savings tools available to parents.
Here’s why it matters: the money you contribute grows tax-free. When you withdraw it for qualified education expenses — tuition, fees, room and board, books, supplies, and even K-12 tuition up to $20,000 per year — you pay no federal taxes on the earnings. Depending on your state, you may also get a state tax deduction or credit for your contributions. Nearly 40 states offer some form of tax benefit for 529 contributions.
You don’t have to use your home state’s plan. You can open a 529 in any state. But it’s worth checking your state’s plan first since the tax benefits for in-state plans can be meaningful.
The contribution limits are generous. There’s no annual IRS limit on how much you can contribute, though contributions above $19,000 per year ($38,000 for married couples) count as gifts and require filing a gift tax return. Each state sets its own lifetime aggregate limit, typically ranging from $235,000 to over $500,000 per beneficiary.
And here’s something that changed in recent years that makes 529 plans even more flexible: thanks to the SECURE 2.0 Act, unused 529 funds can now be rolled into a Roth IRA for the beneficiary, up to a lifetime limit of $35,000. So if your child gets a full scholarship or chooses a different path, the money isn’t trapped. It can become the beginning of their retirement savings instead.
Why We Started Early (Even When Money Was Tight)
I’ll be transparent: when we set up Graham’s 529, we were not in a flush financial position. I had just closed my bookkeeping business. We were adjusting to one primary income. Money was tight in the way it’s tight for most young families — not desperate, but very intentional. We were contributing just $50 a month. Every dollar had a job.
So why start a college savings account when cash flow is that constrained?
Because of math. Specifically, the math of compound growth over time.
The earlier you start contributing — even small amounts — the more time your money has to grow. A dollar invested when your child is an infant has roughly 18 years to compound before college starts. A dollar invested when your child is ten has only eight. That difference in time is enormous.
I’d rather contribute $50 a month for 18 years than try to catch up with $300 a month for the last five. The total out-of-pocket contribution is similar, but the growth is dramatically different because of how long the money has been working.
We don’t contribute a fortune. We contribute what we can, consistently, and we increase it when our income grows. The goal isn’t to fund four years of private university right now. The goal is to start, let time do the heavy lifting, and build from there.
The Numbers That Made It Real for Us
Here’s what we’re saving toward — and the numbers that made us take this seriously.
The average total cost of attending a four-year public university in-state right now runs about $31,000 per year — roughly $124,000 over four years. Out of state, that jumps to over $50,000 per year, or about $204,000 total. A private university averages around $65,000 per year — over $260,000 for a full degree.
And those are today’s prices. College costs have been rising at roughly 2–4% per year. By the time Graham is eighteen, those numbers will be significantly higher.
Even at the most conservative estimate — a four-year in-state public university — we’re looking at a cost that could exceed $175,000 to $200,000 by the time he graduates. That’s a number that’s hard to save for if you start at fourteen. It’s much more manageable if you start at one.
I don’t know where Graham will go to college. I don’t know if he’ll go to college — and I’m genuinely okay with either outcome. Because I’ll be honest I don’t love our current college educational system. Wes and I have talked about other educational options for Graham when he is older with private tutors, specific experiences and worldwide programs. But I want the choice to be his, not something constrained by whether we saved enough. Giving him options is the whole point.
How to Set One Up (It Takes 15 Minutes)
Setting up a 529 plan is one of those tasks that feels like it should be complicated but isn’t. Here’s the honest process:
Step 1: Choose a plan. Start by looking at your state’s plan — check whether it offers a state tax deduction or credit for contributions. If your state doesn’t offer a meaningful benefit, compare a few of the top-rated plans from other states. Most financial sites publish annual 529 plan rankings.
Step 2: Open the account online. You’ll need your Social Security number, the beneficiary’s Social Security number (your child’s), and a bank account to link for contributions. The process is similar to opening any investment account.
Step 3: Choose your investment option. Most plans offer age-based portfolios that automatically shift from aggressive to conservative as your child gets closer to college age. If you’re not sure what to pick, the age-based option is a solid default that requires zero ongoing management from you.
Step 4: Set up automatic contributions. This is the most important step. Pick an amount — any amount — and automate it. $25 a month. $50. $100. Whatever fits your budget right now. You can always increase it later. The critical thing is that it happens automatically so you don’t have to think about it or remember to do it.
Step 5: Tell the grandparents. One of the best things about a 529 plan is that anyone can contribute to it. Grandparents, aunts, uncles, family friends — instead of another toy for the birthday or holiday, they can contribute directly to your child’s future.
That’s it. Fifteen minutes to set up. Five minutes a year to check on it. And potentially tens of thousands of dollars in tax-free growth by the time your child needs it.
The Milestone That Matters Most Isn’t the Financial One
I want to end with something personal.
I’ve spent a lot of time this year thinking about money. Running the SAHM math. Building financial templates. Writing about budgets and bookkeeping and debt schedules. It’s what I do and it’s what I’m passionate about.
But Graham taking his first steps reminded me of something I already knew but sometimes forget: the milestones that matter most have nothing to do with numbers.
His first smile. The first time he said “mama.” The first time he clapped his hands when I walked into the room. The way he rests his head on my shoulder when he’s tired. Those are the milestones that actually define this year.
The 529 plan is important. The financial planning is important. But they’re important because of what they protect — the ability to be present for the moments that money can’t buy. They’re the scaffolding, not the building.
I’m building something that lasts for Graham. Some of it lives in a college savings account. Most of it lives in the time I spend with him, the values I’m trying to model, and the life we’re building as a family — slowly, imperfectly, one wobbly step at a time.
Ready to Start Building Your Financial Picture?
If Graham’s story made you realize you want more clarity and intention around your family’s finances — not just the 529, but the whole picture — Face Your Finances is where I’d start. It’s the complete framework for understanding your income, expenses, debt, and net worth so you can make decisions like this from a place of confidence instead of guessing.
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And if you and your partner want to get on the same page about money — what you’re saving for, what you value, what kind of financial life you’re building together — the free Money & Marriage Conversation Guide walks you through that conversation in one sitting.
👉 Download the free Money & Marriage Conversation Guide
The best time to start saving for your child’s future was the day they were born. The second best time is today — and it takes fifteen minutes.