What if my child doesn’t go to college?

529 plans can be transferred to other family members or used for trade schools, apprenticeships, and (up to limits) student loan repayment. Non-qualified withdrawals face taxes and a 10% penalty on growth.

529 plan or brokerage?

529 for tax-free growth if the money is likely to be used for education. Brokerage if you want flexibility, even at the cost of paying taxes on gains.

What's the cost of college in 2026?

Average annual costs (tuition + fees + room & board): in-state public 4-year $28,840, out-of-state public $46,730, private $60,420 (College Board 2024-25 data, expected to rise 4-6% annually). Total 4-year cost: ~$120K in-state public, $190K out-of-state, $250K private. Costs have outpaced general inflation for 30 years. Mitigation: in-state tuition (move to state with cheap public schools — Florida, Wyoming, North Carolina), community college first 2 years then transfer, scholarships and merit aid (especially state-school merit at private schools), in-state honors college (often comparable to private school education at half the cost).

What 529 plan should I use?

Direct-sold plans (skip the broker) usually have lower expenses. Top picks: Utah's my529, Nevada's Vanguard 529, New York's 529, Illinois Bright Start, California's ScholarShare. Many states give tax deductions for using YOUR state's 529; check first. Compare expense ratios (lower is better — 0.10-0.30% is good), age-based investment options (auto-shifts to bonds as kid approaches college), and contribution flexibility. You can use any state's 529 regardless of where you live or where the child attends college.

How does 529 affect financial aid?

529 owned by the parent: counts as parental asset on FAFSA, reduces aid by up to 5.64% of value (mild). 529 owned by grandparent: previously didn't count on FAFSA but now (FAFSA Simplification Act effective 2024-25) counts when distributed. Strategy: grandparent waits until junior or senior year to distribute, or transfers ownership to parent. 529 in student's own name: counts as student asset, reduces aid by 20% (much higher impact). Don't put 529s in the student's name. Custodial accounts (UGMA/UTMA) are taxed at lower rate but reduce financial aid heavily.

Can I overfund a 529?

Yes. If you over-save and the child gets a full scholarship or doesn't go to college, options: (1) Transfer to another beneficiary (sibling, niece, even self for graduate school). (2) New SECURE 2.0 rule: roll up to $35,000 lifetime to the beneficiary's Roth IRA, $7K/year max, after 529 has been open 15+ years. (3) Withdraw scholarship-equivalent amounts penalty-free (still owe income tax on growth). (4) Take a non-qualified withdrawal (10% penalty + income tax on growth, but principal returns tax-free). Overfunding by $20-30K is manageable; overfunding by $100K+ is wasteful.

Money & Finance · Free tool

College Savings Calculator

Calculate how much you'll save for college by enrollment time. Supports 529 plans and general accounts — free instant projection online, no registration required.

Updated June 2026

Starting balance ($)Monthly deposit ($)Annual return (%)Years

Final balance

$122,079

You contributed

$66,800

Interest earned

$55,279

Year-by-year growthContributionsInterest

19 rows — one per year plus the starting balance

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What it does

A college savings calculator for 529 plans and general investment accounts. Enter current balance, monthly contribution, and years until your child enrolls. 529 plans grow tax-free when used for qualified education expenses; general brokerage accounts grow with taxable gains but offer more flexibility.

$300/month for 18 years at 6% = $117,000. That roughly covers a four-year public in-state undergraduate education if costs grow with inflation — though costs have historically outrun general inflation. Starting as early as possible makes the biggest difference.

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Example input & output

Input

Current: $2,000
Monthly: $300
Return: 6%
Years: 18

Output

Projected balance: $122,000
Total contributed: $66,800
Growth: $55,200

Raising monthly to $500 grows the final balance to roughly $198,000 — $76,000 more for $200/month extra.

How to use it

Enter the current 529 or college-savings balance.
Enter the monthly contribution.
Use 6% as a moderately conservative return (younger kids can use 7%).
Enter years until enrollment.
Compare the result to current projected college costs.

When to use this tool

Any time before college enrollment.
Annually as part of household financial review.

When not to use it

To project financial aid — separate calculation.
For private-K-12 savings (529 usage here has different rules and limits).

Common use cases

New parents planning a 529 strategy.
Grandparent contributions to existing 529s.
Comparing aggressive vs conservative saving paths.

Frequently asked questions

What if my child doesn’t go to college?: 529 plans can be transferred to other family members or used for trade schools, apprenticeships, and (up to limits) student loan repayment. Non-qualified withdrawals face taxes and a 10% penalty on growth.
529 plan or brokerage?: 529 for tax-free growth if the money is likely to be used for education. Brokerage if you want flexibility, even at the cost of paying taxes on gains.
What's the cost of college in 2026?: Average annual costs (tuition + fees + room & board): in-state public 4-year $28,840, out-of-state public $46,730, private $60,420 (College Board 2024-25 data, expected to rise 4-6% annually). Total 4-year cost: ~$120K in-state public, $190K out-of-state, $250K private. Costs have outpaced general inflation for 30 years. Mitigation: in-state tuition (move to state with cheap public schools — Florida, Wyoming, North Carolina), community college first 2 years then transfer, scholarships and merit aid (especially state-school merit at private schools), in-state honors college (often comparable to private school education at half the cost).
What 529 plan should I use?: Direct-sold plans (skip the broker) usually have lower expenses. Top picks: Utah's my529, Nevada's Vanguard 529, New York's 529, Illinois Bright Start, California's ScholarShare. Many states give tax deductions for using YOUR state's 529; check first. Compare expense ratios (lower is better — 0.10-0.30% is good), age-based investment options (auto-shifts to bonds as kid approaches college), and contribution flexibility. You can use any state's 529 regardless of where you live or where the child attends college.
How does 529 affect financial aid?: 529 owned by the parent: counts as parental asset on FAFSA, reduces aid by up to 5.64% of value (mild). 529 owned by grandparent: previously didn't count on FAFSA but now (FAFSA Simplification Act effective 2024-25) counts when distributed. Strategy: grandparent waits until junior or senior year to distribute, or transfers ownership to parent. 529 in student's own name: counts as student asset, reduces aid by 20% (much higher impact). Don't put 529s in the student's name. Custodial accounts (UGMA/UTMA) are taxed at lower rate but reduce financial aid heavily.
Can I overfund a 529?: Yes. If you over-save and the child gets a full scholarship or doesn't go to college, options: (1) Transfer to another beneficiary (sibling, niece, even self for graduate school). (2) New SECURE 2.0 rule: roll up to $35,000 lifetime to the beneficiary's Roth IRA, $7K/year max, after 529 has been open 15+ years. (3) Withdraw scholarship-equivalent amounts penalty-free (still owe income tax on growth). (4) Take a non-qualified withdrawal (10% penalty + income tax on growth, but principal returns tax-free). Overfunding by $20-30K is manageable; overfunding by $100K+ is wasteful.

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