Is College Still the Path?
Funding Flexibility, Not Just a Degree
Posted on: August 29, 2025 by Martin Curiel, CFA in Education Planning
Introduction: Clint, College, and the Promise of Security
When I was 16, my friend Clint gave me a vision of the future: graduate from college, get a good job, and achieve economic security. It was a simple, powerful idea—and it worked. I earned an engineering degree, built a career, and for many years believed that a college degree was the clearest path to stability.
But with AI reshaping the workforce and clients increasingly questioning the value of a traditional degree, I've been rethinking that assumption. As my two children approach college age, I'm asking a more practical question: how much should we save—and how do we plan for an uncertain educational future?
The Changing Landscape of Education & Work
"Artificial intelligence, deep learning … whatever you're doing if you don't understand it — learn it. Because otherwise, you're going to be a dinosaur within three years."
"AI will not replace humans, but those who use AI will replace those who don't."
"Up to 50% of entry-level jobs may vanish in five years; U.S. unemployment could rise to 20% by 2030"
"While a college degree is a worthwhile path to prosperity, it isn't the only one."
The Planning Tool: 529 Plans
As both a parent and an advisor, I've found that the question of "how much to save" comes up in nearly every college planning conversation. And more often than not, the 529 plan becomes the anchor of that plan. It's not just tax-efficient—it also offers flexibility, which matters when you're planning for an unknown future.
A 529 works a lot like a Roth IRA:
The real challenge isn't whether to open a 529—it's how much to contribute. And that's where most families face two major concerns:
Underfunding
You don't save enough and end up relying on loans or scrambling later.
Overfunding
You save too much, and your child doesn't need it—or college looks very different 15 years from now.
There's no perfect answer, but one common approach is to aim for a middle ground. Personally, I funded a 529 fully for one child and left flexibility for the second—something I've seen many clients do as well.
What College Might Cost—and What to Save
The best plans are grounded in real numbers. When I run these scenarios with clients, we often start with two ends of the spectrum—what it looks like to fully fund a public education vs. saving toward a high-cost private school.
These are not just hypothetical models—they're decision-making tools. Every number helps families get closer to a plan that reflects their values, capacity, and goals.
Public University Example
A family saving for their 6-year-old son, Ethan, wants to cover the full cost of an in-state public university.
| Estimated current cost: | $30,000/year |
| Inflation assumption: | 4.5% annually |
| Total 4-year cost in 12 years: | ~$215,000 |
| Target 529 savings: | $160,000 (assumes scholarships or income will cover the rest) |
| Monthly savings needed (6% return): | ~$650/month |
This level of saving, while significant, is achievable for many dual-income households—and reduces future financial pressure.
Private University Example: The Stanford Benchmark
For families aiming to save the maximum possible, Stanford sets a high bar.
| Current cost (2025): | ~$85,000/year |
| Projected cost in 18 years (at 3.6% inflation): | ~$160,000/year |
| Total cost for 4 years: | $640,000 |
Monthly Savings Needed by Coverage Goal (assuming 6% returns over 18 years):
| Goal Coverage | Total to Save | Monthly Savings |
|---|---|---|
| 100% Full cost | $640,000 | $1,580/month |
| 75% of cost | $480,000 | $1,185/month |
| 50% of cost | $320,000 | $790/month |
| 25% of cost | $160,000 | $395/month |
Even saving for half the projected cost dramatically reduces future student loan dependency and preserves college options.
Frameworks That Help Families Decide
It's easy to get overwhelmed by the numbers. That's why I often guide families toward frameworks that turn anxiety into action.
Over the years, these are the three we use most often:
Even applying one of these can create forward momentum—and that alone can bring peace of mind.
Rethinking What "Education" Means
The world of work is changing fast. I now hear clients ask questions I didn't hear a decade ago: "What if college isn't necessary?" or "What if my kid wants to learn online or pursue a trade?"
These are fair questions. AI is reshaping career paths, and the rise of bootcamps, apprenticeships, and self-directed learning means college is no longer the only gateway to success.
That said, college is still the default for most families—and still required for many professional roles. More importantly, the college experience itself may offer value beyond academics: independence, resilience, and lifelong relationships.
A 529 plan, thankfully, can support this broader vision of education—including some trade and continuing education programs. You're not just funding tuition—you're preserving optionality.
The Real Value of College?
Clint and I both went to Cal Poly, sharing a house for a few unforgettable years. We explored Tijuana (and lots of Dos Equis!), made sunrise taco runs, and debated politics into the night. Living away from home meant figuring out who I was—navigating messy roommate dynamics (I was the messy one—sorry, Clint), learning to set boundaries, and gradually becoming more independent.
College didn't directly teach me how to do my job. But it gave me space to build confidence, form deep friendships, and define myself outside my parents' expectations.
In today's world—where skills can be self-taught and credentials are evolving—college may still offer something harder to quantify: the chance to grow up, connect meaningfully, and explore who you want to be.
Final Thoughts
Saving for college is no longer just about affording tuition. It's about investing in options, preparing for change, and giving your children the freedom to explore life on their own terms.
Clint's message still resonates: education creates opportunity. A 529 plan is one way to keep that opportunity alive—whether your child becomes an engineer, a tradesperson, or a self-taught coder.
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