How much should I save? How fast will my savings grow?


We recommend you start by aiming for ⅓ the cost of college, with the expectation that the other two thirds will be paid for with current income and financial aid. If you can save more, even better! A contribution of $100 may grow to as much as $500 within 18 years. Our projections assume an 8% rate of return and 5% inflation, and are based on the historical performance of the S&P 500.

To calculate the difference between using a 529 versus an investment that’s subject to capital gains taxes, we assume a blended capital gains tax rate of 15%. As with any investment, you should note that differences in account size, the timing of transactions and market conditions at the time of investment may yield different results, and you may lose money. Past performance is not indicative of future results.

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