Saving for College Calculator
How much should you save each month to fund your kid\'s college?
How much does college actually cost?
4-year cost (tuition, fees, room, board, books) for a kid entering college today:
- Public in-state: $110,000 (College Board 2024-25)
- Public out-of-state: $190,000
- Private 4-year: $245,000
- Community college (2 yr) + 2 yr public transfer: $65,000
Add 5-7% annual inflation if your kid is younger — by 2042, in-state public will likely be $200K+. The calculator at the top doesn\'t auto-inflate; pick your target with that in mind if your kid is under 10.
529 vs. UTMA vs. high-yield savings
For dedicated college savings, a 529 plan is the standard answer — tax-free growth and tax-free withdrawals for qualified education expenses, plus state-tax deduction in most states. Returns historically 6-8% in age-based portfolios.
UTMA / UGMA custodial accounts are more flexible (can be used for anything, not just college) but lack the 529\'s tax advantages and reduce financial-aid eligibility more sharply. Use these for "money for the kid that might not be for college."
High-yield savings (4-5% in 2025) is fine for the last 3-5 years before college when you don\'t want stock-market exposure. Not optimal for the first 13+ years where market returns dramatically beat savings rates.
What if you can\'t hit the full target?
Most families don\'t fully fund college from savings alone. The realistic mix:
- 40-60% from family savings (529, UTMA, current income at college time)
- 20-40% from financial aid, scholarships, and grants
- 10-20% from kid\'s own earnings + summer jobs
- 0-30% from federal student loans (if needed)
Saving even 50% of the projected cost is a strong outcome — most families save 25-40%. Knowing the gap upfront helps the kid plan school choice realistically.
Should the kid contribute too?
Even a small contribution from the kid (10-20% of cost via summer jobs, scholarships, or their own savings) changes the dynamic — they treat school choice and effort as their investment. The contribution doesn\'t need to be financially decisive; the engagement effect is what matters.