We opened a 529 when my son was 4 or 5, he is almost 15 now and a sophomore in high school. I've been contributing $100 to $200 every paycheck since and we put almost all of the gift money he gets at Christmas and birthdays into his account as well. Even though it is now a considerable sum of money I can tell is not going to be enough to cover more than 2 of 4 years at a CA state or university school and prices seem to increase every year.
I think the best savings plan I've seen is the one a coworker of mine has. When she got married she and her husband both had homes. They moved into one and have been Renting the other to cover the mortgage on it. When her kids reach college age she plans to sell the rental home to fund it. I thought it was crazy at the time but after seeing how much the home's value has increased in the past 12 years I have to admit her plan is better than mine, by a lot $$$.
I've got three degrees and only took out student loans for one of them. Summary: left law school with $99k in debt, paid $1k per month for 5 years (about $60k), went to pay it off early by over 20 years and was told the balance was $120k. That being the case We already know that we don't want our son to have any student if there is anyway to avoid it, part of it is being realistic in the college he may go to. We have to keep him in a CA school to keep the tuition and travel costs down, so forget about Ivy League or instate private schools like Stanford, USC, etc.
For us it is not a question of if or when (regarding college) its where. I would be ok with him starting at a junior college for up to two years but prefer that he go straight to a four year at least 3 hours away. I'm also ok with some trade schools (our friend is a tech at BMW that makes over $100k per year) as long as it's something wi5h a future. That is, my son won't be majoring in film or history, at least not on my dime(s). My perspective is one of, "my education is my salvation". Even though I'm not working directly in my field of study (law) I could not have gotten into my current position without the education I have, the requirements and preferences are just too high (e.g. BS with 7+ years experience, MBA preferred, JD strongly preferred/prioritized). Some people can make it without a college education but I'd rather my son have it and not need it instead of need it and not have it. After all, it's not something you can just buy off the shelf at anytime since it takes at least 4 years to earn.
Another option for those financially challenged is to join the military. It's quite a commitment but if you can do 4 years you build skills and get the benefits of the gi bill including va loans.
@jcyamahariders wife , I have a bs in finance and one of my best friends is an attorney who Specializes in wills and trust. Although I'm not a financial planner we are in agreement on this. It's never to late to start saving for college and it's never to early either.
On the other end of this one of my friends has a sr. in college and is already thinking about what she is going to do with all the money she won't be spending after he graduates later this year. She didn't have much of a college fund so she paid as he went and looks at his graduation date as the date she gets a big raise.
