Save for College

Average annual college cost in 2026: $12,000 (public in-state), $24,000 (public out-of-state), $55,000 (private). Over four years: $48,000-$220,000. The 529 plan is the best vehicle: contributions grow tax-free, withdrawals for education are tax-free, and most states offer tax deductions on contributions. If you start at birth and invest $300/month at 7% average return, you will have approximately $130,000 by age 18 — enough for four years at most public universities. Starting at age 5? You need $550/month for the same result. Starting at age 10? $1,050/month. The lesson: start early, even with small amounts. Do not let the total number paralyze you — partial funding is far better than no funding. Many families combine 529 savings with scholarships, financial aid, and student contributions. If your child does not attend college, 529 funds can transfer to siblings, be used for trade school, or (since 2024) roll over to a Roth IRA up to $35,000.