If you’re wondering when to begin planning for your child’s college education, the answer is simple: start now. Early planning isn’t just smart, it’s essential. The earlier you begin, the more financial flexibility and strategic options you’ll have down the road.
One of the biggest advantages of starting early is compound growth. By opening a tax-advantaged account like a 529 plan when your child is young, you give your savings time to grow exponentially. Even modest monthly contributions can add up significantly over 15 to 18 years. This is especially important given that college tuition tends to rise faster than general inflation. Without a plan, families can find themselves scrambling to cover costs that have ballooned over time.
Early planning also helps you position your finances to maximize financial aid eligibility. Many families don’t realize that the way assets are structured, especially in the years leading up to college, can dramatically affect how much aid their child receives. If you’re also managing other financial priorities like retirement or special needs planning for a sibling, starting early gives you the breathing room to balance those goals without compromising your child’s future.
As your child grows, your planning focus should evolve. In the early years (ages 0–5), it’s all about setting up the right accounts and automating contributions. Between ages 6 and 12, you’ll want to reassess your goals and begin discussing college expectations with your child. By the time they’re in their early teens, it’s time to research schools, estimate costs, and understand how financial aid formulas work. And in the final stretch—ages 16 to 18—you’ll be preparing financial aid applications, comparing aid packages, and planning withdrawals.
For families navigating special needs planning, coordinating college savings with ABLE accounts or SSI eligibility is especially important. You don’t want to jeopardize benefits or stretch your budget too thin. A well-integrated strategy can help protect both your child’s education and your family’s long-term financial health.
College planning isn’t just about saving money—it’s about creating options.
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/ SIPC.
This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.