How Much Should You Save for College? 529 Targets by Age
Monthly 529 savings targets for public in-state, private and two-year college, using College Board 2025–26 costs.
CalciTools Editorial · · 6 min read
According to the College Board, the average published budget for 2025–26 — tuition, fees, housing and food — is $30,990 a year at a public four-year college for in-state students and $65,470 at a private nonprofit four-year college. Tuition and fees alone average $11,950 and $45,000.
Those are sticker prices. Most students pay less after grants, but the sticker price is the safe number to plan around.
Monthly savings targets by child’s age
| Child’s age today | Public in-state, 100% | Public in-state, 50% | Private nonprofit, 50% |
|---|---|---|---|
| Newborn | $688 | $344 | $727 |
| 3 | $815 | $407 | $861 |
| 6 | $1,003 | $501 | $1,059 |
| 10 | $1,466 | $733 | $1,549 |
| 14 | $2,846 | $1,423 | $3,006 |
Four years starting at 18; costs grow 4% a year from 2025–26 levels; 6% annual return; starting from $0.
The pattern is stark: waiting from birth to age 10 roughly doubles the monthly amount, and waiting until 14 quadruples it, because there’s less time for growth to do the work.
Why a 529 is usually the right account
- Earnings grow tax-free when used for qualified education costs.
- More than 30 states offer a state income tax deduction or credit for contributions.
- Starting in 2026, up to $20,000 a year can go toward K-12 costs, and leftover money can roll into the beneficiary’s Roth IRA (up to $35,000 lifetime, after 15 years).
Retirement first, then college
If money is tight, make sure you’re getting your full 401(k) employer match before funding a 529 — students can borrow for college, but you can’t borrow for retirement. Then use the 529 calculator to set a monthly amount you can stick with.
Frequently asked questions
How much is enough in a 529?
There’s no single number. Many planners suggest aiming for a third to a half of projected costs and covering the rest from income during college, grants and scholarships, and modest federal loans.
Do 529 savings hurt financial aid?
Only a little. A parent-owned 529 counts as a parental asset in the federal aid formula, assessed at up to 5.64% of its value — far less than money in the student’s own name.
What returns should I assume?
Most 529 age-based portfolios shift from stocks to bonds as the child gets closer to college. An average of about 5%–6% a year over a long horizon is a common planning assumption, with lower returns if you start late.
Sources
Estimates for planning, not financial, tax or legal advice. CalciTools calculators use published government figures and the assumptions shown on each page. Your actual numbers depend on details we don’t model. Check important decisions with a qualified professional.