A Debt-Free Mom Can Build $2.3 Million for Her Child by Age 65, Dave Ramsey Says—Here’s How

By age 65, a single mother who eliminates $74,000 in debt in five years and then invests 15% of her $58,000 salary for 30 years can build $2.3 million. This is the consequence of prioritizing debt elimination over 529 contributions, as advised by Dave Ramsey. The math is clear: investing $8,700 annually at a 10% return over 30 years produces a figure consistent with Ramsey’s projection. But the debt must be gone first. High-interest debt—often 10–18%—erodes the value of any 529 contributions made in parallel. The net effect is negative. A personal loan, typically the highest-rate debt, should be eliminated before student loans or car loans. Once debt-free, she should open a Roth IRA before a 529. Roth contributions grow tax-free and can be partially withdrawn for emergencies, including college costs. Only after maxing retirement contributions at 15% of income should a 529 be opened. At that point, she is building both generational wealth and college funding simultaneously.