How much to save per month by child’s age?
| Child’s age today | Projected 4-year cost | Monthly to cover half |
|---|---|---|
| Newborn | $266,593 | $344 |
| 5 years | $219,120 | $465 |
| 10 years | $180,101 | $733 |
| 14 years | $153,951 | $1,423 |
Public four-year in-state total budget of $30,990 in 2025–26, growing 4% a year; 6% investment return; starting from $0.
Why save in a 529 instead of a regular account?
- Tax-free growth when spent on qualified education.
- State tax breaks for contributions in most states.
- Favorable financial aid treatment: a parent-owned 529 counts at up to 5.64% of its value in the aid formula, versus 20% for money in the student’s name.
- Flexibility: change beneficiaries, pay K-12 costs, or roll leftovers into a Roth IRA after 15 years.
Should I save for college or retirement first?
Retirement usually comes first: students can borrow for college, but nobody lends for retirement. A common order is to capture your full 401(k) employer match, build an emergency fund, then split extra savings between retirement and a 529.
Frequently asked questions
How much does college cost in 2025–26?
College Board’s average published total budget (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. Average tuition and fees alone are $11,950 and $45,000.
How much should I put in a 529 each month?
To cover the full cost of four years at a public in-state college for a newborn, assuming 4% cost growth and 6% returns, you’d need to save about $688 a month. Covering half is about $344. Starting later raises the monthly amount sharply.
What can 529 money be used for?
Qualified higher-education expenses — tuition, fees, books, required equipment, and room and board for students enrolled at least half-time — plus up to $20,000 a year of K-12 expenses (raised from $10,000 starting in 2026) and up to $10,000 lifetime toward student loans. Earnings on non-qualified withdrawals are taxed plus a 10% penalty.
What if my child doesn’t go to college?
You can change the beneficiary to another family member, keep the money for later, or — if the account has been open at least 15 years — roll up to $35,000 over a lifetime into the beneficiary’s Roth IRA, subject to annual IRA limits.
Do I get a tax deduction for 529 contributions?
Not federally. More than 30 states give a state income tax deduction or credit for contributions, usually only to the home-state plan. Growth is tax-free federally when used for qualified expenses.
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.