The short version
- A typical year costs about $25,600 at a public four-year school and about $50,200 at a private one.
- You do not have to save it all. Many families aim for about a third.
- Starting at age 10 instead of at birth means saving more than three times as much each month.
Nobody knows the exact bill for a college that is 10 or 18 years away. But you can get a surprisingly good number in five minutes, and it turns "we should save something" into "we save $90 a month."
What college costs today
We looked at College Scorecard data for 2,207 four-year colleges and added up tuition, on-campus housing, books, and an allowance for a computer and internet. Here is the middle of the pack:
| School type | Typical cost per year | Four years |
|---|---|---|
| Public, in-state tuition | about $25,600 | about $102,000 |
| Private nonprofit | about $50,200 | about $201,000 |
You do not have to save all of it
A popular rule of thumb: save about a third, cover about a third from your income while your child is in school, and cover the rest with scholarships, aid and your student's own contribution.
A third of a public school's four-year cost is about $35,000. A third of a private school's is closer to $70,000. Because costs keep rising, aiming a little higher is smart.
Your monthly number
This is what you would need to save each month to reach your target by age 18, assuming a 6% yearly return:
| Target | Start at birth | Start at age 5 | Start at age 10 | Start at age 14 |
|---|---|---|---|---|
| $35,000 | $90 | $149 | $285 | $647 |
| $70,000 | $181 | $297 | $570 | $1,294 |
| $100,000 | $258 | $425 | $814 | $1,849 |
Make it doable
- Start small. Even $25 a month builds the habit, and grows to about $9,700 by age 18 at a 6% return.
- Raise it with every raise. Bump your monthly amount whenever your income goes up.
- Put windfalls to work. Tax refunds and birthday money go a long way.
- Let family help. Many plans have a gifting page you can share with grandparents.
- Check in once a year. Your plan should change as your child and the costs do.
Get your exact number
A table gives you a ballpark. Your family has specifics: a school your child loves, a start year, what you have already saved. The free Launch529 Planner uses each school's own price history to project the cost for your child's start year, then shows how much to save each month to close the gap.
These figures are illustrations, not promises. Returns vary, and the numbers above assume steady growth.
Questions families ask
What return should I assume?
Many planners use 5% to 6% a year for age-based portfolios over long periods. Returns are not guaranteed and can be negative in any year, so it is wise to plan with a conservative number and check in every year.
What if I cannot reach the target?
Save what you can. Every dollar saved is a dollar you do not borrow. Scholarships, in-state schools and starting at a community college can all lower the bill, and you can raise your monthly amount as your income grows.
Should I save for the full cost?
Most families do not. A common goal is about a third of the cost from savings, a third from income while your child is in school, and the rest from aid, scholarships and the student's own contribution.
This article is general information, not tax, legal or financial advice. Rules and limits change, so check current IRS guidance and your state plan, or talk to a qualified professional.