Singletary: Start saving early for a debt-free college grad

I’ll tell you.

When my husband and I had our first child, we were in our early 30s. We owned a home, and the mortgage took up less than 30 percent of our net monthly income. If you keep your housing payment manageable, you can usually free up money to save.

We had been saving for retirement since our early 20s and have kept doing so, even while saving for college.

When we started saving for our children’s education, we were making good but not super-fat salaries. We bought used cars that we kept long enough that we didn’t have car payments for a decade or more.

Before deciding how to save, we calculated how much we needed to invest on a monthly basis. You have to know your endgame — how much you need — so that you know how to start.

We tried a few calculators but settled on Vanguard’s “College savings planner” (https://vanguard.wealthmsi.com/csp.php). Along with what we had saved, it estimated we needed to invest $210 a month to have enough for Olivia to go to a state school.

We used a tax-deferred 529 plan. We opened her account when she was 6. We chose the “age-based” option, which means that the younger the child, the more aggressive the strategy. As Olivia got older, the money was automatically moved to more conservative positions.

We elected to invest in the 529 plan offered by the state of Maryland, where we live. It has low fees. And because we are residents, we get a $2,500 state tax deduction every year for each of our three children’s accounts.

Olivia ended up with savings worth about $66,000. My husband and I made a few lump-sum payments when we got extra money. We started earlier for our other two children, so we haven’t had to make any extra contributions. Depending on their school choice, they too will have enough to graduate debt-free.

Olivia took Advanced Placement courses in high school and scored high enough on the exams to earn college credit. She started at the University of Maryland College Park with a semester’s worth of credits, which reduced costs. She received $21,500 in merit-based scholarships, which covered about a fourth of the total cost of her attendance.

Olivia did have to buy her own textbooks. To afford them, she began working during the summer following her junior year in high school. She is a super saver. She put away about 80 percent of her earnings to pay for her books and personal expenses.

We did not allow Olivia to work during her freshman year of college. But by her sophomore year, she got a part-time job. She has had paid internships throughout college.

She would have lived at home or started at a local community college if our savings came up short.

Maryland wasn’t her first choice. She ended up loving it and all the more because, when she walks across the stage next month to get her diploma, she won’t have the weight of debt on her shoulders. And neither will we.

Michelle Singletary welcomes comments and column ideas. Reach her in care of The Washington Post, 1150 15th St. N.W., Washington, DC 20071; or singletarym@washpost.com.