The expense of giving our kids a college education can be intimidating. But by starting early and saving in a tax-advantaged savings account like a 529, you can make progress toward your goal. Just tell us a little bit about your future grad, and we’ll show you how much you could save.
Explore how investing an extra
$50, $150, or $250 a month could impact
’s college savings.
Did you know you can use a 529 college savings account to pay for more than just tuition? Those funds can also cover books, required supplies and equipment, and even rent and food. Even if you’re planning to apply for financial aid or a scholarship to help fund a college education, could still benefit from a 529.
*This hypothetical example assumes the child is exactly the child's current age (in whole number of years) and will begin college on the child's 18th birthday. Number of years of savings equals 18 years minus the current age of the child. Nominal investment growth rate is assumed to be 4.5%, and hypothetical monthly contributions into an investment account are assumed to grow at a 2.5% inflation rate annually. All accumulated savings amounts are shown in future (nominal) dollars. Your own investment account may earn more or less than this example, and income taxes as well as a penalty may or may not be due when you withdraw from your account. Investing in this manner does not ensure a profit or guarantee against a loss in declining markets.
Because is and you only have a short time until college begins, you may still want to consider a tax-advantaged savings account like a 529 in order to take advantage of its benefits.
However, because college is so close, keeping your money in cash instead of investments may be a smart decision, because you might not have time to ride out potential fluctuation in the stock market. Learn more about 529s to find out what makes sense for you.