How much should I save for college per month?

Monthly savings depend on your child’s age, target school type, and coverage goal. For a newborn targeting in-state public at 50% coverage, $150-$275/month is a common starting range. Use the calculator with your specific inputs for a personalized number.

What is the best account for college savings?

The 529 plan is the best vehicle for most families -- tax-free growth, tax-free qualified withdrawals, and state income tax deductions. For families uncertain about college, a Roth IRA (parent’s) provides flexibility as contributions can be withdrawn penalty-free for any purpose.

How does 529 affect financial aid?

Parent-owned 529 plans are assessed at 5.64% of value on the FAFSA -- a low rate. $50,000 in a parent 529 adds at most $2,820 to the Expected Family Contribution. This small impact makes 529 plans the optimal savings vehicle for families who may qualify for need-based aid.

What happens if my child doesn’t go to college?

Change the beneficiary to another family member, roll up to $35,000 to the beneficiary’s Roth IRA after 15 years (SECURE 2.0), or take a non-qualified withdrawal -- only the earnings (not contributions) face the 10% penalty and income tax. Overfunding risk is much lower now than it once was.

When should I start saving for college?

The best time is at birth -- or before. The second best time is today. Every year of delay requires significantly higher monthly contributions for the same outcome due to the loss of compounding time. Even starting with $50/month at any age is better than waiting for a 'perfect' time to begin.

529 Plan FAQ: Every Common College Savings Question Answered

529 plans generate dozens of common questions from families at every stage of college planning. This FAQ covers every common question with specific, practical answers for 2025 including the latest SECURE 2.0 provisions.

Key Points

529 plan frequently asked questions

Common Question	Quick Answer
What if my child doesn’t attend college?	Change beneficiary, roll $35K to Roth IRA (SECURE 2.0), or withdraw with penalty on earnings only
Can I use 529 for K-12?	Yes -- up to $10K/year per student for K-12 private tuition (federal)
How does 529 affect financial aid?	Parent-owned 529 assessed at 5.64% on FAFSA -- small impact
Can I open a 529 for myself?	Yes -- be both owner and beneficiary for graduate school or self-education
What expenses qualify?	Tuition, fees, books, room/board, required tech, K-12 tuition up to $10K/year
How is growth taxed?	Tax-free if withdrawn for qualified expenses; 10% penalty + tax on earnings for non-qualified

🔑529 Non-Qualified Withdrawal Math

Only the earnings portion faces the 10% penalty -- not contributions. On a $40,000 529 ($25K contributions, $15K earnings), only the $15K in earnings is penalized. The $25K comes back penalty-free. Non-qualified withdrawal is less catastrophic than families fear.

What This Means for You

529 plans can be opened for children before birth -- as soon as you have a Social Security number
Account owner (parent) retains control of funds -- beneficiary cannot access without owner’s permission
529 funds can be used at any accredited institution including international universities
Trade schools and vocational programs qualify if they are accredited
Monthly automatic contributions are the most reliable way to build college savings consistently

Calculate Your College Savings

Use the college savings calculator to determine exactly how much you need to save monthly based on your child’s age, target school type, and desired coverage percentage.

Calculate Your College Savings Goal

Enter your child’s age and target school to see your personalized monthly savings plan.

Open College Savings Calculator →

529 Plan FAQ: Every Common College Savings Question Answered

Key Points

What This Means for You

Calculate Your College Savings

Frequently Asked Questions

Frequently Asked Questions

More College Savings Guides

How to Use the College Savings Calculator: Complete Guide

529 Plan Complete Guide: How to Maximize Tax-Free College Savings

How Much to Save for College Based on Your Child’s Current Age