Plan and save for your child's education with our comprehensive calculator. Analyze 529 plans, calculate monthly contributions, and track progress toward college funding goals.
Plan and save for your child's education expenses. Calculate how much to save monthly to reach your education funding goals with compound growth.
13 years until college (age 18)
Historical average: 5-6% annually
How much of the total education cost do you want to cover with savings?
State tax deduction rate for 529 contributions (varies by state)
Percentage of costs you expect scholarships/grants to cover
"Education is the most powerful weapon which you can use to change the world." - Nelson Mandela
Education planning involves complex decisions about savings accounts, tax strategies, and investment options. Get expert guidance from qualified financial advisors who specialize in education planning.
College costs have increased 180% over the past 20 years, far outpacing inflation. Understanding these costs and starting early is crucial to avoiding massive student loan debt.
Average annual cost
Public In-State
Average annual cost
Public Out-of-State
Average annual cost
Private University
For a child born today, these costs will likely double by the time they reach college age (18 years). A $60,000/year private school could cost $120,000/year in 2042!
529 plans are the gold standard for education savings. They offer tax-free growth and withdrawals for qualified education expenses, making them incredibly powerful for long-term college savings.
Investments grow tax-free, and withdrawals for qualified education expenses are never taxed. This can save tens of thousands compared to taxable accounts.
Most states allow $300,000-$500,000 total contributions per beneficiary. No annual limits, though gifts over $18,000/year may trigger gift tax reporting.
Covers tuition, fees, books, room & board, computers. Can be used at any accredited college nationwide. Can even pay for K-12 private school ($10,000/year limit).
If one child doesn't use it all, transfer to another child, grandchild, or even yourself for grad school. Money isn't locked to one person.
Many states offer tax deductions or credits for 529 contributions. Can save $200-$500+ annually depending on your state and contribution amount.
You don't need to save 100% of college costs. Many families aim for 50-75%, with the rest covered by scholarships, financial aid, student work, and modest loans. Here's a realistic approach:
Plan to cover college costs with three sources:
Target: $50,000-$75,000 saved by age 18. Monthly: $200-$300 from birth.
Target: $100,000-$125,000 saved by age 18. Monthly: $350-$450 from birth.
Target: $150,000-$200,000 saved by age 18. Monthly: $500-$700 from birth.
Limit: $2,000/year | Benefit: Tax-free growth for education
Similar to 529 but with lower limits. Can be used for K-12 expenses without restrictions. More investment flexibility than 529s. Income limits apply ($110K single, $220K married).
Limit: $7,000/year | Benefit: Dual-purpose retirement/education
Contributions can be withdrawn anytime tax and penalty-free. Earnings can be withdrawn penalty-free for education (but taxed). Great backup plan if child gets scholarships - money stays for your retirement.
Limit: None | Benefit: Complete flexibility
No restrictions on usage. Can be used for anything, not just education. Taxed on gains, but long-term capital gains rates are favorable. Good supplement to 529 for flexibility.
Limit: None | Benefit: Child's asset at age 18/21
Money becomes child's property at age of majority. Can hurt financial aid eligibility. Less tax-advantaged than 529s. Generally not recommended unless you've maxed other options.
Your kids can borrow for college, but you can't borrow for retirement. Max your 401(k) match and IRA before aggressive college saving.
Starting at birth vs age 10 can mean half the monthly contribution needed. Compound interest is your friend - start early!
With 18 years to invest, you can handle stock market volatility. Don't put it all in bonds or savings accounts earning 2-3%.
Non-education withdrawals face 10% penalty plus taxes on earnings. Don't save so much that you can't use it all. Balance with retirement savings.
Transfer the 529 to another child, grandchild, or yourself. Use for trade school or apprenticeships (many qualify). Or withdraw it and pay 10% penalty plus taxes on earnings - not ideal but not catastrophic.
Parent-owned 529s have minimal impact (assessed at 5.64% vs 20% for student assets). The tax benefits far outweigh any financial aid reduction. Plus, most aid is loans anyway.
Better for parents to own it. Grandparent 529 distributions count as student income (50% assessment rate). Grandparents can contribute to parent-owned plans instead.
Yes! Since 2019, you can use up to $10,000 lifetime from 529 plans to pay student loans. This adds flexibility if you over-save or get scholarships.