Tricia Scarlata of JPMorgan said the most effective way to save for college is to start early and contribute regularly using a 529 plan [1].

This guidance comes as families face steadily increasing tuition costs, making long-term financial planning essential to avoid excessive student debt. The use of specialized savings vehicles allows parents to maximize the growth of their funds over a child's developmental years.

Scarlata said her approach during an appearance on Bloomberg Money, emphasizing that consistency is the key to funding future education expenses [1, 2]. By utilizing a 529 savings plan, families in the U.S. can leverage specific tax advantages designed to encourage higher education savings [1].

The strategy focuses on the power of compounding interest and the benefit of time. Starting the process at birth or in early childhood provides a longer horizon for investments to grow, reducing the monthly burden on parents as the student approaches college age [1].

While various methods for saving exist, Scarlata said the 529 plan is the right way to manage these specific costs [1, 2]. This approach helps parents keep pace with the rising cost of degrees in the United States [1].

“The right way to save for college is to start early and save often.”

The emphasis on 529 plans reflects a broader shift toward structured, tax-advantaged investing to offset the volatility of education inflation. By advocating for early and frequent contributions, financial experts are pushing families to move away from relying solely on loans and toward a proactive equity-building model for education.