What you should aim to have saved by each age

There is no single "correct" amount — it depends on whether you are saving for a public university, private college, a trade school, or a mix of funding sources. But financial advisors often use a benchmark: save roughly one year of college costs by age 17, two years by age 27, three years by age 37, and so on. This assumes you will cover the rest through a combination of student loans, grants, work-study, and current income during college years.

The math works backward from what college actually costs. At a public in-state university, four years of tuition, fees, room, and board currently run between $80,000 and $120,000 depending on the school and state. At a private college, the range is roughly $200,000 to $280,000. If you save one year's worth by the time your child turns 17, you have reduced what you need to borrow or pay from current income by a meaningful amount.

This timeline assumes you start saving when your child is born. If you start later — say, at age 10 or 14 — the amounts per month will be higher, but the same principle applies: something saved is better than nothing, and the earlier you start, the more time compound growth has to work.

Key Takeaways

  • A common benchmark is to save one year of college costs by age 17, two years by age 27, and three years by age 37, with the remainder covered through loans, grants, and current income.
  • Public in-state college costs currently range from $80,000 to $120,000 for four years; private colleges range from $200,000 to $280,000, but these figures change yearly.
  • Starting to save at birth and contributing consistently allows compound growth to do much of the work; starting later requires higher monthly contributions to reach the same target.
  • A 529 college savings plan or a Coverdell ESA allows your savings to grow tax-free, which reduces the total amount you need to set aside from your own pocket.
  • If you fall short of the benchmark, you can still reduce borrowing by saving whatever you can; even partial savings lower the loan burden.

Age-by-age savings targets for public in-state college

Assume your goal is to cover one year of a public in-state university by age 17. Current costs for one year (tuition, fees, room, and board) range from $20,000 to $30,000 depending on the state. To reach $25,000 by age 17 starting from birth, you would need to save roughly $100 to $150 per month, depending on the investment returns your account earns.

If you want to cover two years by age 27, the target is roughly $50,000. Saving from birth to age 27 with modest investment growth means contributing around $120 to $180 per month. If you start later — say, at age 10 — you have only 17 years to reach that target, which raises the monthly amount to roughly $200 to $250.

These figures assume your money is invested in a mix of stocks and bonds that grows at an average rate of 5 to 7 percent per year. If you keep the money in a savings account earning less than 1 percent, you will need to contribute more from your own pocket because growth will be minimal. If you start at age 10 and keep money in a savings account, you might need to save $300 per month to reach $50,000 by age 27.

Age-by-age savings targets for private college

Private college costs are roughly double those of public in-state universities. One year currently costs between $50,000 and $70,000. To save one year's worth ($60,000) by age 17 starting from birth, you would need to contribute roughly $240 to $360 per month with typical investment growth.

For two years of private college ($120,000) by age 27, monthly contributions from birth would be around $280 to $420. If you start saving at age 10, the monthly amount jumps to roughly $500 to $700 to reach the same target in 17 years.

Private college costs vary widely by school. Some charge $50,000 per year; others charge $80,000 or more. Before you lock in a savings target, research the specific schools your child might attend, because the difference between a $50,000-per-year school and a $70,000-per-year school means a difference of $80,000 over four years.

How investment growth changes what you need to save

The account type and investment mix matter enormously. A 529 plan (also called a may have access to tuition plan) lets your savings grow tax-free, which means you keep more of the growth rather than paying taxes on it each year. A Coverdell ESA (Education Savings Account) works similarly but has lower contribution limits. Both allow you to invest in stock-heavy or bond-heavy portfolios depending on how many years you have until college.

If you save $150 per month in a regular savings account earning 0.5 percent annually, you will have roughly $31,000 after 17 years. If you save the same $150 per month in a 529 plan invested in a balanced portfolio earning 6 percent annually, you will have roughly $42,000 — an extra $11,000 from growth and tax savings. That difference means you could reach a higher college-cost target without increasing your monthly contribution.

Younger savers can afford to take more investment risk because they have time to recover from market downturns. A child born today has 18 years until college, so a portfolio weighted toward stocks (perhaps 80 to 90 percent stocks, 10 to 20 percent bonds) is reasonable. A child who is 10 years old has 8 years left, so a more conservative mix (perhaps 50 to 60 percent stocks, 40 to 50 percent bonds) makes sense to reduce the chance of a market downturn right before college starts.

What happens if you start saving late

If your child is already 10 or 12 years old and you have not yet saved, you can still reduce the amount you need to borrow. The monthly contribution will be higher, but something is better than nothing.

Starting at age 12 with a goal of saving $30,000 by age 18 (six years away) requires roughly $400 to $450 per month in a 529 plan with moderate growth. If you can only manage $200 per month, you will reach roughly $15,000, which still cuts the loan burden in half compared to saving nothing. Many families use a combination: some savings, some loans, some grants, and some current income during the college years.

If you are starting very late — your child is 15 or 16 — focus on what you can realistically save in the remaining time rather than chasing a benchmark you cannot reach. Even $5,000 to $10,000 saved reduces the first-year loan amount, which lowers the total interest paid over the life of the loans.

How to adjust your target based on your situation

The benchmarks above assume you are saving for a four-year residential university. If your child is considering a community college for the first two years before transferring, the total cost is lower, so your savings target can be lower too. Community college tuition and fees are typically $3,000 to $5,000 per year, compared to $20,000 to $30,000 at a public university.

If you expect your child to receive merit scholarships or athletic scholarships, you can reduce your savings target accordingly. If you expect to pay for graduate school later, you might want to save more. If your child will work part-time during college, that income can cover some costs, so your savings target can be lower.

Your household income also matters. Families with lower incomes may be may be able to access for federal grants (like the Pell Grant) that do not need to be repaid. Families with higher incomes typically receive less grant aid and may need to save more or borrow more. Use the Federal Student Aid FAFSA (Free Application for Federal Student Aid) to estimate how much grant aid your family might receive; this helps you set a realistic savings target.

Frequently Asked Questions

Should I save for college or retirement first?

Financial advisors generally recommend saving for your own retirement first, because you cannot borrow for retirement the way you can for college. If you have not started a retirement account, prioritize that. Once you have a basic retirement foundation, then add college savings. Many families do both at the same time, but not at equal rates.

What if I save more than my child needs for college?

Money in a 529 plan can be used for graduate school, trade school, or apprenticeship programs, not just undergraduate college. If your child does not use all the funds, you can transfer the account to another child or grandchild. Some states allow you to roll unused funds into a Roth IRA (up to certain limits), though rules vary by state.

Does saving for college hurt my child's chances of getting financial aid?

Parent-owned 529 plans count as parental assets on the FAFSA and reduce aid may be able to access somewhat, but the impact is smaller than if you keep the money in a regular savings account. Student-owned accounts reduce aid may be able to access more. The tax savings and growth from a 529 plan usually outweigh the small reduction in aid, but run the FAFSA numbers for your specific situation to be sure.

Can I save for college in a regular savings account instead of a 529?

Yes, but you will pay taxes on the interest or investment gains each year, which reduces your effective growth rate. A 529 plan grows tax-free, so you reach your target faster with the same monthly contribution. For most families, a 529 plan is more efficient, but a regular savings account works if you prefer simplicity or flexibility.

What if my child gets a full scholarship?

If your child receives a full scholarship that covers tuition, fees, room, and board, you may not need the college savings. Money in a 529 plan can be transferred to a sibling or used for graduate school. If you withdraw funds for non-education purposes, you will owe taxes on the growth plus a 10 percent penalty, so plan accordingly.