When children enter our lives, we often live in the moment instead of planning ahead. But it's never too early to start investing in our children's future. By saving for their college education sooner rather than later, we can have more peace of mind when it's time to head off to college. 

Calculating the costs – and benefits
There are many different options to help you decide who much you should save when it comes to college costs, but the main point is that college can be expensive. In fact, the Education Data Initiative reports that the total average student loan debt balance (including private loans) may be as high as $40,111. Although college debt may cause graduates to delay making a large purchase – like a house – their degree could earn them considerably more money over the course of their lifetime. 

Planning now may dramatically reduce or eliminate college-related debt.
Many parents today are tasked with saving for their child's educational future while paying off their own student loan debt. Fidelity Investments calculated that 76% of parents have started saving for their children to attend college in 2022, compared with 58% in 2007. In fact, saving for college outranks retirement planning for families with children, according to Fidelity's 2022 College Savings Indicator.

The benefits of 529 plans.
There are a lot of different ways to start saving for college – and the sooner you do it, the more time your funds will have a chance to grow. For example, opening a 529 savings plan for a newborn allows 18 years to contribute, with tax-deferred interest that compounds annually.
Some may be concerned that a 529 plan may disqualify their student from receiving financial aid, but Fidelity's study shows that 529 plans have minimal impact on the ability to qualify for financial aid. Plans are administered by state agencies, meaning that plan options vary from state to state. You can learn more about your state's 529 plan at College Savings Plans Network's website.

Some of the benefits of a 529 plan include:

• Friends and family members can make gift contributions to college savings accounts.
• Select family members may have the option to open a separate 529 plan on behalf of your student.
• Your employer may provide more tax savings by allowing you to contribute to a 529 through payroll deductions.

While 529 plans are popular options for college savings, you have other choices as well, like savings and investment accounts, savings bonds, certificates of deposit, and NCUA-insured high-interest savings accounts. Whatever option you decide is best for you, planning is important.