According to the 2017 Cost of Care Survey by Care.com, the average cost for one child in day care is $211 a week. It turns out that this is one case where my child is absolutely above average. This cost can vary dramatically from state to state, but at roughly $850 a month, that is a huge expense for families to bear.

If you are one of those families, congratulations on this exciting milestone! I’m sure you have plans for at least some of that money, I know I do. Part of my plan is to allocate some of the savings into my son’s 529 plan account. I save regularly though payroll direct deposit, and will increase the amount per paycheck. Here are three reasons why you should consider taking some of it and investing in a 529 account for your kindergartener:

1. A little goes a long way: Taking $100 a month that would have been spent on daycare and putting into a 529 plan instead can potentially turn into over $25,000¹ for college. Use our College Savings Planner to estimate what is possible for your family.
2. The power of compounding: According to our annual college savings trends report, families who open an account and start saving early in a beneficiary's childhood are often in a better position to grow their savings. Our data suggests that account owners with beneficiaries ages 16 to 17 who had the foresight to begin saving early have now accumulated an average account balance of $31,460.²
3. It’s easy to get started: Many plans accept contributions of as little as $25 from anyone who wants to add money to the account. Money can generally be contributed through checks, one-time or recurring online bank transfers, and even through payroll direct deposits. See what kind of plan your state offers and the benefits offered.