The Gift of Education: Planning for a Meaningful Legacy
May 29, 2025
Few gifts are more powerful than education. It opens doors, shapes futures, and can be a defining part of your legacy. But with tuition costs rising rapidly, having a plan is essential. Whether you’re a parent, grandparent, or simply want to support someone’s future, tools like 529 plans and custodial accounts offer smart, flexible ways to save. Starting early amplifies your impact—and reduces stress later.
Start Early, Let It Grow
When it comes to saving for college, time can matter more than amount saved. With college costs rising by 4% annually in many cases—a $35,000 education today that appears within reach can leave you scrambling to catch up years down the road.
To show the power of time and compounding, we modeled three approaches using the same total contributions of $108,000:
1. A lump-sum contribution at birth
2. Annual contributions over the child’s first nine years of life ($12,000 per year)
3. Annual contributions over the nine years leading up to college ($12,000 per year)
Assuming an 8% annual return, the results were striking. In Scenarios 1 and 2, the four years of education were fully covered, with surplus funds available for other qualified expenses like books and school supplies. In Scenario 3, even though the same amount was contributed, there’s a projected shortfall of more than $120,000!
While every family is different, the takeaway is universal: starting early gives your savings more time to grow and time to adjust your savings plans, if needed. If you’d like to see how these scenarios might apply to your situation, Burling Wealth Partners is here to help.
Is a 529 Plan Right for Me?
A 529 account offers tax-free growth and withdrawals for qualified education expenses, from kindergarten through grad school. Some states also offer tax deductions on contributions, making it a powerful planning tool.
For greater flexibility, custodial accounts allow funds to be used for more than just education; however, they’re taxable and transfer to the child at adulthood, limiting control.
Your best option depends on your goals and timeline.
Let’s Build a Plan
At Burling Wealth Partners, we help families build thoughtful, personalized education strategies that align with their broader financial goals. Whether you’re getting started or need an existing plan reviewed, we’re here to be a resource. Let’s work together to give the next generation the head start they deserve.
About Burling Wealth Partners
Burling Wealth Partners is a Chicago based, independent, fee-only fiduciary serving high-net-worth individuals and families from coast to coast. We provide comprehensive wealth management services designed to protect and preserve your wealth today, foster sustainable growth for the future, and instill the confidence to focus on what matters most to you and your family. Our client-centric approach ensures tailored strategies that align with your financial goals, offering clarity, simplicity, and long-term security.
Disclosures
The information, analysis, and opinions expressed herein are for general and educational purposes only. Nothing contained in this commentary is intended to constitute legal, tax, accounting, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type.
Advisory services are only offered to clients or prospective clients where Burling Wealth Partners and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and the possible loss of principal. Burling Wealth Partners, LLC (“Burling”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Burling may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Additional information about Burling Wealth Partners, LLC is available at burlingwp.com or on the SEC’s website at www.adviserinfo.sec.gov.