Updated August 2026

College is a major investment. According to the College Board, average tuition and fees for the 2024-2025 school year was $11,610 for in-state public universities, $30,780 for out-of-state public universities, and $43,350 at private colleges.

These numbers can seem large, but starting early makes a huge difference. If you start planning now, you can decrease the overall expense and feel prepared when the time comes. Here is how you can make your paycheck work harder for your family's future.

Why You Should Start Saving Early

It might feel strange to plan for college while your child is still in diapers. However, giving your money more time to grow is your biggest advantage.

Starting early allows you to use investment strategies that can earn higher returns over time. As your child gets closer to college age, you can shift to safer, lower-risk options. This approach builds in time to recover if the market fluctuates.

Choosing the Best College Savings Plan

There are several ways to save, including Roth IRAs and UGMA/UTMA accounts. A 529 plan can be a popular choice.

What is a 529 Plan?

A 529 plan is a specialized education savings account. It offers tax free growth, meaning you do not pay taxes on the money your investments earn over time. Withdrawals are also tax free as long as the funds are used for qualified education expenses, like tuition, fees, and books.

Keep in mind that parent owned 529 plans have a minimal impact on financial aid. Only up to 5.64% of the account’s value is counted against a student's aid eligibility.

Free Up Your Budget to Save More

It is hard to put money away for college if you are struggling to cover immediate household needs. If your refrigerator breaks or you need a new laptop, you shouldn't have to derail your savings goals.

With Perpay, you can get the things you need today and pay for them over time straight from your paycheck. Shop for everyday items you need from our Marketplace and pay over time in small, manageable payments.

Personalized Spending Limit: Unlock up to a $1,000 initial spending limit.
Approvals: Orders are approved individually, on a case-by-case basis.
Payments: Make payments over time through your paycheck with no interest or fees.
Shipping: Once we receive your first payment, your order will ship to you.

Instead of draining your bank account for a big purchase all at once, Perpay lets you pay over time. This keeps your daily budget predictable, making it easier to consistently fund your college savings plan.

Build Credit for Better Student Loan Options

Many families use student loans to help pay for college. A strong credit score helps you qualify for lower interest rates, which saves you money over time.

Building credit does not have to be complicated. With Perpay, you can build your credit history for just $5/month. We report your positive payment history and up to a $1,000 spending limit to all three major credit bureaus.**

Prioritize Your Financial Future

When setting your family's financial goals, remember to also prioritize your retirement savings. You can borrow money for college, but you cannot borrow money for retirement.

It is natural to want to put your kids first, but preparing for your own retirement means you won't need to rely on them financially later on. Build a strategy today, automate your savings, and celebrate your progress along the way.

^*Access to the Perpay Marketplace is offered by Perpay, Inc., and is only available to eligible consumers residing in the United States. The Perpay Marketplace is subject to credit approval. Applying for a Perpay account will not affect your FICO® or Vantage® score. However, we may obtain information from Clarity which may affect your credit profile with this alternative credit bureau.

^**Results may vary. Based on observed score increases after 12 months for members who enrolled in Perpay+ and made on time payments. See the Marketplace Terms and Conditions for more details.

Perpay does not provide financial, legal, or regulatory advice. The content is for general informational purposes only. Any views expressed are those of Perpay, not its partner institutions. We do not endorse or guarantee the accuracy of any linked third-party information. Links to Perpay products are advertisements. All external brand names belong to their respective owners.

How to Save for Your Child's College Education