When my first child was born, I sat down with a calculator and a cup of coffee and figured out what it would actually take to pay for college. Not the theoretical version — the real version. The one where you start with what you can actually afford and let time do the heavy lifting.
The answer was $3.57 a day. That's it. Less than a latte. Less than a drive-through lunch. Less than most of the things we spend money on without thinking about it.
I've been following this plan for 14 years now, and it works. Not in theory — in practice, in a real brokerage account, with real money that's actually growing. Here's the whole thing, laid out so you can do it too.
The Plan: Start Small, Build Steadily
The concept is embarrassingly simple:
- Year 1: Save $25 per week ($3.57/day)
- Every year after: Increase your weekly contribution by $5
- Invest it: Put it in a low-cost S&P 500 index fund
- Don't touch it: For 18 years
That's the whole plan. No complicated spreadsheets. No financial advisor taking 1% off the top. No "set it and forget it" robo-advisor with monthly fees. Just a weekly transfer that goes up by five bucks every January.
The magic isn't the amount — it's the consistency. $25/week feels manageable for most families. The $5/year increase tracks roughly with typical raise amounts, so it never feels like a stretch. And 18 years of compound growth turns a modest savings habit into a serious college fund.
The Numbers: Year by Year
Here's the full contribution schedule assuming a 7% average annual return (the conservative end of historical S&P 500 performance). These numbers use start-of-year contributions with full annual compounding:
| Year | Weekly | Daily | Annual | Total Invested | Projected Balance |
|---|---|---|---|---|---|
| 1 | $25 | $3.57 | $1,300 | $1,300 | $1,391 |
| 2 | $30 | $4.29 | $1,560 | $2,860 | $3,158 |
| 3 | $35 | $5.00 | $1,820 | $4,680 | $5,326 |
| 4 | $40 | $5.71 | $2,080 | $6,760 | $7,924 |
| 5 | $45 | $6.43 | $2,340 | $9,100 | $10,983 |
| 6 | $50 | $7.14 | $2,600 | $11,700 | $14,534 |
| 7 | $55 | $7.86 | $2,860 | $14,560 | $18,611 |
| 8 | $60 | $8.57 | $3,120 | $17,680 | $23,252 |
| 9 | $65 | $9.29 | $3,380 | $21,060 | $28,497 |
| 10 | $70 | $10.00 | $3,640 | $24,700 | $34,386 |
| 11 | $75 | $10.71 | $3,900 | $28,600 | $40,966 |
| 12 | $80 | $11.43 | $4,160 | $32,760 | $48,285 |
| 13 | $85 | $12.14 | $4,420 | $37,180 | $56,395 |
| 14 | $90 | $12.86 | $4,680 | $41,860 | $65,350 |
| 15 | $95 | $13.57 | $4,940 | $46,800 | $75,210 |
| 16 | $100 | $14.29 | $5,200 | $52,000 | $86,039 |
| 17 | $105 | $15.00 | $5,460 | $57,460 | $97,904 |
| 18 | $110 | $15.71 | $5,720 | $63,180 | $110,877 |
Total out of pocket: $63,180. Projected value at a conservative 7%: $110,877. That's $47,697 in growth — money that came from absolutely nowhere except patience.
And here's the kicker: the S&P 500 has historically returned closer to 10% annually over long periods. At 10%, this same plan projects to over $140,000. At 8%, you're looking at roughly $120,000.
Why Year 14 Is Highlighted
That's where I am right now. Fourteen years in. My oldest starts looking at colleges in four years, and the account is sitting at roughly what the table says it should be. The plan actually works.
I won't pretend the last 14 years were smooth. The market crashed in 2020. It dipped hard in 2022. There were months where the balance went backwards. But I kept making the weekly transfer, because that was the deal I made with myself when my kid was born.
The hardest part of this plan isn't the math. It's not touching the money when the market drops 20% and every headline tells you the sky is falling.
Where to Put the Money
You have two main options:
Option 1: A 529 College Savings Plan
Tax-advantaged growth. Withdrawals for education expenses are tax-free. Many states offer a tax deduction on contributions. The downside: the money must be used for education, or you'll pay penalties.
Option 2: A Regular Brokerage Account
No tax advantages, but complete flexibility. If your kid gets a scholarship, starts a business, or decides college isn't for them, the money is still yours to use however you want. You'll pay capital gains tax on the growth, but you'll never be penalized for using it "wrong."
I went with a mix of both — roughly 70% in a 529 and 30% in a regular brokerage account as a hedge. Your situation might be different.
The Investment: Keep It Simple
Pick a low-cost S&P 500 index fund and stop thinking about it. Here are the ones I'd recommend:
- Vanguard S&P 500 ETF (VOO) — 0.03% expense ratio
- Fidelity 500 Index (FXAIX) — 0.015% expense ratio
- Schwab S&P 500 Index (SWPPX) — 0.02% expense ratio
The differences between these are negligible. Pick one. Automate your weekly contribution. Go live your life.
What If You're Starting Late?
The table above assumes you start when your child is born. But what if they're already 5? Or 10?
Start anyway. Even 8 years of this plan (starting at year 1 levels) gets you to roughly $23,000 at 7%. That's not $110k, but it's a meaningful dent in tuition. And you can accelerate by starting at a higher weekly amount.
If your child is 10, consider starting at $50/week instead of $25. Eight years at that rate with $5 annual increases projects to about $35,000-$40,000. That's a year of in-state tuition at many universities.
You don't need a financial advisor. You don't need a complicated plan. You need $25 a week, a little bit of discipline, and 18 years. The math is boring. The result is not.
Start This Week
Open a brokerage account or a 529. Set up a $25 weekly automatic transfer. Buy shares of an S&P 500 index fund. Put a reminder in your calendar for January to bump it up by $5.
That's it. That's the whole article. The rest is just time.