Plan for education costs — college tuition, private school, or professional development. See how much to save monthly and how your savings grow over time.
In Wealthos, these values come automatically from your added accounts, tracked income, expenses, and goals.
Wealth in 10 years
100k
Total saved
67k
Earned interest
+28k
College costs have increased roughly 5-7% annually — far outpacing general inflation. Average annual costs range from $11,000 (public in-state) to $40,000+ (private). Over 4 years, that's $44,000 to $160,000+. Starting to save early and investing in a 529 plan can dramatically reduce the burden.
529 education savings plans offer tax-free growth and tax-free withdrawals for qualified education expenses. Many states also offer state income tax deductions for 529 contributions. You can use 529 funds for tuition, room and board, books, and even K-12 tuition (up to $10,000/year).
Don't sacrifice your retirement savings for your children's education. Students can get scholarships, financial aid, and loans — you can't borrow for retirement. A balanced approach: save what you can for education after meeting retirement contribution targets.
Set your education savings target (total tuition and expenses), enter your current savings and monthly contribution, and choose a return rate appropriate for your timeline. The calculator projects when you'll reach your target. For younger children with longer timelines, a higher return rate reflects the ability to invest more aggressively early on.
Saving for $100,000 in college costs with a newborn (18-year horizon): starting with $5,000, contributing $300/month at 7% return in a 529 plan, you'd accumulate approximately $131,000 by age 18. That's $69,800 in contributions and $61,200 in tax-free growth — the 529 tax advantage alone could save $12,000-$15,000 compared to a taxable account.
Account for education cost inflation (5-7% annually) when setting your target. Today's $100,000 degree may cost $180,000-$200,000 in 15 years.
Open a 529 plan as early as possible — even with small amounts. The tax-free compounding over 18 years is substantial, and many states offer additional state tax deductions.
If you're unsure about the exact cost, aim for in-state public university tuition as a baseline. Any excess can be used for graduate school, transferred to a sibling, or rolled into a Roth IRA.
Don't reduce retirement contributions to fund education savings. Your child can get scholarships and loans; you can't borrow for retirement.