The average cost of a 4-year public university is around $100,000-$120,000, while private universities can exceed $250,000. With $10,000 initial savings and $250 monthly contributions at 6% over 18 years, you'd accumulate approximately $127,000. Starting early gives you the best chance to meet these rising costs without taking on excessive student loan debt.

A 529 plan is a tax-advantaged education savings account that lets your investments grow tax-free when used for qualified education expenses. Many states also offer tax deductions for contributions. The compound growth shown in this calculator would be even more powerful in a 529 plan because you keep more of your returns by avoiding capital gains taxes.

Ideally, start saving as soon as your child is born to maximize the 18-year compounding window. Even small monthly contributions started at birth grow significantly more than larger contributions started at age 10. If you're starting later, you'll need to contribute more each month, but it's always better to start now than to wait any longer.