Question 1

How much should I save per month for my child's college?

Accepted Answer

A common rule of thumb is to save 25-50% of the expected college cost. For a public university (~$25K/year in 2026), aim for $250-$500/month starting from birth. This calculator shows your exact monthly contribution based on your child's age, current savings, expected return, and tuition inflation.

Question 2

What is a 529 plan and how does it work?

Accepted Answer

A 529 plan is a tax-advantaged education savings account. Contributions grow tax-free and withdrawals are tax-free if used for qualified education expenses (tuition, room, board, books, computers). Many states offer tax deductions or credits for contributions. The calculator's return rate field models your 529 investment growth.

Question 3

How fast is college tuition rising?

Accepted Answer

College tuition has historically risen about 5-6% per year, roughly double the general inflation rate. The calculator defaults to 5% tuition inflation. At 5% per year, a $25K annual cost today becomes about $54K/year in 18 years.

Question 4

What return rate should I assume for my 529 plan?

Accepted Answer

For an age-based 529 portfolio that starts stock-heavy for young children, a 6-7% average annual return is reasonable. As the child approaches college, the portfolio shifts to bonds, reducing expected returns to 3-4%. The calculator's 3 scenario buttons show conservative (4%), balanced (7%), and aggressive (9%) outcomes.

Question 5

Is it too late to start saving if my child is already a teenager?

Accepted Answer

No. Even 3-5 years of saving helps. If your child is 14 and you save $500/month at 5% return, you'll accumulate about $34K by age 18 — enough to cover a year of public university. Every dollar saved reduces future student loan debt dollar-for-dollar plus interest.

Question 6

Should I save for college or retirement first?

Accepted Answer

Generally, max out retirement contributions first (especially if you get an employer match), then save for college. Your child can borrow for college but you cannot borrow for retirement. However, some state 529 plans offer tax deductions worth taking alongside retirement savings.

Question 7

What if my child gets a scholarship or doesn't go to college?

Accepted Answer

529 funds can be used for trade schools, apprenticeships, and K-12 education (up to $10K/year). You can also change the beneficiary to another family member, or withdraw the money (paying income tax + a 10% penalty on earnings only, not principal). The principal you contributed is never penalized.

College Savings Calculator

📊 3 Return Rate Scenarios

📅 Year-by-Year Projection

📌 5 Tips to Maximize College Savings

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