The window between their first paycheck and their first tuition bill is shorter than you think.
529 education savings plans grow tax-free. Compound makes it possible to open one in eight minutes — before the summer job money disappears.
Every year you wait is a year of compound interest you can never recover. A 13-year-old starting today has 9 years of tax-free growth before their first tuition bill arrives.
The average teen summer job pays $2,400. Routing even 25% into a 529 at age 15 produces more at enrollment than waiting until 18 and contributing the full amount.
Open the custodial 529
You (parent or grandparent) open the account in 8 minutes. No minimums. No account fees for the first year. The beneficiary is your child — they can't touch the principal.
Connect a paycheck or bank
Link your teen's first summer job direct deposit or your own checking account. Set a recurring contribution — even $25/month changes the math at age 18.
Funds invest automatically
Compound selects an age-based portfolio that shifts from growth to preservation as enrollment approaches. You're never managing allocations at 11pm.
Withdraw tax-free at enrollment
Qualified withdrawals for tuition, room, board, books, and fees are 100% federal tax-free. Your state deduction was already taken on the way in.