One month after my wife told me she was pregnant, I opened a college savings account for our unborn child. It marked the beginning of our journey in saving for college.
We hadn’t even shared the news with our families yet. But there I was, researching 529 plans for saving for college and setting up a ScholarShare account. Was it a little premature? Maybe. Did it feel like the most “dad” thing I could do in that moment? Without question.
Why It Mattered (Especially as a Midpoint Dad)
As a dad in my 50s, I see things differently than I would have at 25. When saving for college and becoming a parent later in life, there’s an urgency to think long-term—maybe even longer-term than most parents do. While many new parents are researching strollers and sleep schedules, I was also thinking about the day my child would pack for college… and whether I’d be retired or even still around to support her.
For us Midpoint Dads—those of us who start fatherhood with more gray hair and maybe a little more financial stability—there’s a unique opportunity and responsibility. I didn’t want my daughter to be 22 years old, chasing a dream but shackled by student loans, especially when she might not have her parents nearby to catch her if she falls. This wasn’t just about saving money—it was about building a safety net I might not always be there to provide in person. Saving for college became a priority.
That’s why I opened a 529 plan before she even had a name.
what is a 529 plan?
A 529 college savings plan is a tax-advantaged investment account that helps families save for education expenses. It’s a simple, powerful tool, especially when saving for college early.
Why I Chose ScholarShare 529 (California’s Plan):
- Tax-Free Growth: Your money grows without being taxed, and withdrawals are tax-free when used for qualifying education expenses.
- Ownership & Flexibility: The account is in your child’s name but controlled by you until they turn 18. It can also be transferred to another beneficiary.
- Simple Gifting: Family and friends can contribute directly with a personal link—perfect for birthdays and holidays when your child already has more toys than shelf space.
- Low Effort, High Value: I didn’t need to be a financial advisor to set it up or maintain it. ScholarShare made it simple.
But What If a 529 Isn’t the Right Fit? Other College Savings Options
529s aren’t for everyone. Here are a few other options midpoint dads might consider for saving for college, depending on financial goals and flexibility:
🏦 Custodial Accounts (UGMA/UTMA):
These accounts allow you to save and invest for a child’s future. The funds don’t have to be used for education, but they become the child’s property at the age of majority (usually 18 or 21), and they’re not tax-advantaged for education expenses.
💼 Roth IRA (For You):
Though intended for retirement, you can withdraw your contributions (not earnings) at any time, and you can use up to $10,000 of earnings for qualified education expenses without penalty. This gives you flexibility if your child doesn’t end up needing the funds.
💸 High-Yield Savings Account or CD:
Not great for long-term growth, but very low risk. Could be a short-term complement to more aggressive strategies.
🧾 Taxable Brokerage Account:
Offers the most flexibility in terms of use but comes with capital gains taxes and no education-specific benefits. This is a good option if you want unrestricted access to the funds.
Each of these comes with pros, cons, and tax considerations. A financial advisor can help tailor the right mix based on your age, income, and goals for your child.
How Much Should You Save? Let’s Do the Math
Let’s say you start saving for college the month your child is born. Here’s how monthly contributions can grow over 18 years, assuming a 5% average annual return (compounded monthly):
| Monthly Contribution | Total Saved by Age 18 | Total Contributions | Interest Earned |
|---|---|---|---|
| $50 | $17,425 | $10,800 | $6,625 |
| $100 | $34,850 | $21,600 | $13,250 |
| $500 | $174,248 | $108,000 | $66,248 |
Even small, consistent contributions towards saving for college can make a significant difference over time. The secret is starting early—something us midpoint dads know the value of all too well.
Final Thoughts
Opening that 529 account wasn’t just a financial decision—it was an emotional one. It was my way of saying, “I believe in your future—even before I’ve met you.”
And while we’re still figuring out diaper sizes, teething hacks, and how to baby-proof our sanity, we’ve already set one piece of her future in motion by saving for college.
To other dads who may be starting this journey later in life: you’re not behind—you’re experienced. Use that wisdom to lay a foundation your child can stand on.
Got questions about how to get started on saving for college or want to contribute to my daughter’s fund instead of buying another stuffed animal? Message me, and I’ll share her ScholarShare gift code.
💬 Want to Start a 529?
Visit ScholarShare529.com or explore your state’s options. You don’t have to save everything—you just have to start somewhere.
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