529 plans make tax-free college saving easier than ever for Coloradans this back-to-school season

We are talking about all things back-to-school on CBS News Colorado. And with that, we're providing money-saving tips for parents.

MSU Denver Affiliate Finance Professor Robert Persichitte says, right now is the prime time to get college education costs covered for your child with a 529 plan.

"Really, the best time to invest is 10 years ago. The second-best time to invest is now," said Persichitte.

College tuition is only rising. According to the College Board, the average four-year tuition at private universities is $43,350. Public in-state tuition is about $11,000 and jumps to $30,000 for out-of-state students.

"So, a 529 plan has a lot of different advantages," Persichitte explained. "And the main one here in Colorado is you get a tax break on your Colorado taxes as long as you're in the College Invest program. Any growth in that account is going to be tax-free, as long as it's used for college or other qualified expenses."

"Colorado has their First Steps program, so ideally, right when your baby is born, you want to get started on this because the state is going to help you. And one of the things I love about Colorado specifically is you can make these small contributions. You can go in as little as $100 a year. $25 a month is the minimum, so you can start with an amount that is not going to be missed from your paycheck. You can have these little changes that add up over time and make a big impact for the kids," he said.

You can also use that saved money in other ways. "I know that college is not for everybody and that's not always the path that you're going down, but with the added flexibility, you have so many more options. I tell my clients, the magic number is $30,000. Once you have that, you can convert that into a Roth IRA, and you don't have to use it for college."

For U.S. citizens born from 2025 to 2028, the government will also seed newly introduced Trump accounts with an initial contribution of $1,000.

To learn more about how to sign up for a Colorado 529 plan, click here.