The 529 Plan Math That Could Save Your Kid Tens of Thousands in Student Debt

College costs have tripled in the past 20 years when adjusted for inflation. The average four-year degree at a public university now runs over $100,000 including room and board. And yet most parents either have no savings plan or are using a regular savings account that earns next to nothing. A 529 plan is one of the most powerful savings vehicles available, and almost nobody runs the numbers on it before their kid turns 16. What a 529 plan actually does A 529 plan is a tax-advantaged investment account specifically designed for education expenses. The money you contribute grows tax-free, and withdrawals for qualified education expenses (tuition, room, board, books, supplies, even K-12 tuition up to $10,000 per year) are also tax-free. Many states also offer a state income tax deduction or credit for contributions. If you live in a state with income tax and a state deduction, you are effectively getting a guaranteed return on your money before it even starts growing. The compounding ad