College Savings from Birth
College Savings Plan
Calculate monthly savings needed for your child's education
Formula
Future cost = current cost x (1.05)^years. Monthly savings = (target - FV of current savings) / ((((1+r)^n - 1) / r)) where r = monthly return, n = months until college.
Frequently Asked Questions
How much should I save for my baby's college?
Starting from birth, saving about $250-500/month can cover a significant portion of public college costs, assuming 7% returns. The earlier you start, the more compound growth helps. Even small amounts add up significantly over 18 years.
What is a 529 plan?
A 529 plan is a tax-advantaged savings account for education expenses. Contributions grow tax-free, and withdrawals for qualified education expenses are also tax-free. Many states offer additional state tax deductions for contributions.
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