Your Child Is 6.
College Is 4,380 Days Away.
Here's exactly what to do with each one.
Tuition has outpaced inflation by 3.4× since 2005. The gap compounds every semester.
While the Consumer Price Index has risen 46% over the past two decades, average four-year public university tuition has climbed 153%. Private institutions have accelerated even faster. By 2043, a four-year private degree is projected to cost $205,000 in today's dollars — before room, board, or fees.
Annual Cost of Attendance · 2005–2043 Projection
Source: College Board Trends in College Pricing · Post-2025 values are projections assuming 6.8% annual tuition inflation · CPI baseline indexed to 2005 public tuition
Families who start before age 3 accumulate 47% more than those who start at age 6 — same monthly contribution.
A 529 is a tax-advantaged investment account specifically designed for education expenses. Contributions grow tax-free. Qualified withdrawals — tuition, fees, room and board — are never taxed. The compounding effect of an early start is not incremental; it is exponential.
Contribution Schedule · Projected to Age 18 · 7% avg. annual return assumed
| Start Age | End Age | Monthly | Total In | Projected Value | Tax Savings* |
|---|---|---|---|---|---|
| 0 | 18 | $200/mo | $43,200 | $89,400 | $8,640 |
| 0 | 18 | $400/mo | $86,400 | $178,800 | $17,280 |
| 3 | 18 | $200/mo | $36,000 | $61,200 | $7,200 |
| 3 | 18 | $400/mo | $72,000 | $122,400 | $14,400 |
| 6You are here | 18 | $200/mo | $28,800 | $40,600 | $5,760 |
| 6You are here | 18 | $400/mo | $57,600 | $81,200 | $11,520 |
| 10 | 18 | $200/mo | $19,200 | $23,400 | $3,840 |
| 10 | 18 | $400/mo | $38,400 | $46,800 | $7,680 |
* Tax savings estimate assumes 20% effective state + federal marginal rate on earnings growth · Projections are illustrative, not guaranteed
Your zip code is worth up to $990/year in free state tax deductions — if you use the right plan.
34 states and Washington D.C. offer a state income tax deduction or credit for 529 contributions. The maximum annual benefit ranges from $0 (California, Texas, Florida) to nearly $1,000 for Illinois joint filers. You are not required to use your own state's plan — but the deduction usually applies only to in-state contributions.
Click any column header to sort · Top 10 states by annual tax benefit
| State | Plan Name | Single Deduction | Joint Deduction | State Tax Rate | Max Benefit/yr | Rating |
|---|---|---|---|---|---|---|
| Illinois | Bright Start | $10,000 | $20,000 | 4.95% | $990 | A |
| New York | NY529 Direct | $5,000 | $10,000 | 8.82% | $882 | A |
| Indiana | CollegeChoice 529 | $1,500 | $3,000 | 3.23% | $750 | A |
| Pennsylvania | PA 529 | $17,000 | $34,000 | 3.07% | $522 | A |
| Virginia | Invest529 | $4,000 | $8,000 | 5.75% | $460 | B |
| Michigan | MI Education Savings | $5,000 | $10,000 | 4.25% | $425 | B |
| Ohio | CollegeAdvantage | $4,000 | $8,000 | 3.99% | $319 | B |
| Utah | my529 | $2,290 | $4,580 | 4.85% | $222 | B |
| California | ScholarShare 529 | — | — | 13.3% | — | C |
| Texas | Texas College Savings | — | — | No tax | — | C |
Rating based on deduction generosity, plan investment options, and fees · Source: NASRA, College Savings Plans Network 2025 · Consult a tax advisor for your specific situation
Out-of-state plans are often superior investment vehicles
Utah's my529 and Nevada's Vanguard 529 consistently rank among the lowest-fee plans nationally, even for non-residents who forfeit the state deduction. Run the math: lower expense ratios over 18 years often outweigh a $300–$500 annual deduction.
The difference between conservative and aggressive at age 18: $188,400. Same $400/month. Different allocation.
Three model portfolios, all beginning with $400/month at age 6. The aggressive model assumes equity-heavy positioning through age 14, shifting to preservation in the final four years — the standard age-based glide path. All projections assume the child enrolls in fall 2043.
Projected Portfolio Value · $400/month · Age 6 Start
All projections assume $400/month contribution, age 6 start, 2025 dollars · Conservative: 4.5% avg. annual return · Balanced: 7.0% · Aggressive: 9.5% · Actual returns will vary