More Education > Less Education
Now a good friend of mine
Sat with me and he cried
He told me a story
I know he ain't lying
Said he went for a job
And Mr. Man said
Without an education
You might as well be dead
'Don't Be A Dropout' - James Brown
Today, on National 529 Day we are reminded of the importance of education and ways to save for those expenses. As I watch my two kids (ages 14 and 6) grow up, I think every day about their future and what the world will look like for them. I worry about what the job market will become due to advances in technology—especially A.I.—and, of course, how expensive it will be to educate them. We all want our kids to be successful and worry-free.
It surprises me when I hear people say that college is less important today or may not be needed in the future. I believe that higher education is more critical than ever. Today’s culture prioritizes instant gratification and rapid achievement. But with such rapid change comes great uncertainty—and their best chance to combat that uncertainty is by pursuing a college education.
Historically, a college degree has led to higher-quality jobs, increased wages, and greater resilience during economic downturns. College graduates earn, on average, 61% more than high school graduates, and those with advanced degrees earn 89% more. But the benefits go beyond salary:
Health care coverage: 86% of college grads have access through their employers, compared to 66% of high school grads.
Retirement benefits: More employers offer retirement plans to college-educated workers.
Unemployment rates: Lower for those with degrees, leading to greater financial stability.
Life expectancy: College graduates live to an average of 84, while high school graduates live to 77, due in part to better access to healthy food, fitness, healthcare, and medicine.
Sources:
Indeed: Average Salary Comparison
While it's easy to say kids need a college education, getting them there, paying for it, and choosing the right degree path can be life-changing—and requires careful planning.
Looking back over time, the U.S. workforce has evolved dramatically:
1910–1930s: Agriculture and domestic service
1940–1960s: Manufacturing and factory work
1970–1990s: Clerical and sales roles
2000s: Retail and hospitality jobs
This makes sense, as the U.S. economy shifted to consumer spending and moved manufacturing overseas for cheaper labor. The question is: what will the next 40 years look like in the age of A.I.?
TechCrunch reports that tech companies are hiring 50% fewer college graduates since 2019. While tech jobs overall are growing, the demand is increasingly specific—favoring specialties like artificial intelligence, especially in industries such as healthcare, finance, and retail. According to the Wall Street Journal, 87% of hiring leaders value A.I. experience. The strongest career prospects for the next generation point to STEM fields—science, technology, engineering, and math. Other promising areas include nursing (to meet the needs of an aging population) and environmental science (to address climate change and sustainability challenges).
Sources:
Economic Times: Tech Hiring Trends
Independent: College Grads & AI
Now let’s talk about college affordability. College tuition has increased nearly 180% in the past 20 years, far outpacing inflation. This is largely due to decreased public funding, higher demand, and expanded federal financial aid. The average student loan debt is now $38,375, with an average payment of $536/month, typically taking 20 years to repay.
Based on our planning software, a child born today will need:
$213,000 in 18 years to attend a 4-year in-state public school
$448,000 for a 4-year private university
To reach those goals, you’d need to save:
$463/month for public college
$975/month for private college
We recommend 529 savings plans because of their tax advantages and investment potential. Funds in a 529 plan grow tax-deferred, and withdrawals are tax-free when used for qualified education expenses—like tuition, books, and room & board. Recent legislation has also expanded their flexibility:
Use up to $10,000 annually for K–12 private school tuition
Roll over up to $35,000 into a Roth IRA for the child if not used for education
This Roth IRA rollover feature is incredibly powerful. I ran projections assuming a $7,000 annual contribution for 5 years (totaling $35,000) beginning at age 22 after college. Assuming a 7% return in a balanced portfolio, that Roth IRA would grow to $408,000 by age 60—all tax-free.
We’re happy to run projections for any school or help set up an education account. 529 plans can receive contributions from anyone—grandparents, relatives, or family friends. We use Vanguard (a low-cost provider) to establish these accounts, and Hamilton Wealth does not bill on these child-specific assets.
Let’s prepare the next generation for a future that seems, increasingly, less certain.
And please let us know if you have questions.
—Jerry