How Much Should You Save for College? A Guide to Setting a Savings Goal

When it comes to saving for college, one of the biggest questions families face is: How much should we actually save?

There’s no magic number. Your goal will depend on where your child goes to school, how much you want to contribute and what other resources may be available. But you can use today’s costs to create a realistic starting point.

Start With the Cost of College

College costs can vary significantly depending on the type of school. For the 2025–26 academic year, the average annual student budget is:

• Public two-year, in-district: $21,320
• Public four-year, in-state: $30,990
• Public four-year, out-of-state: $50,920
• Private nonprofit four-year: $65,470

These estimates include more than tuition, such as housing, food, books, transportation and other personal expenses. (College Board)

For perspective, four years at today’s average cost would be approximately:

• In-state public: $123,960
• Out-of-state public: $203,680
• Private: $261,880

Of course, these are today’s costs, not what college will cost years from now. College prices can change, so consider these numbers a starting point.

Decide How Much You Want to Cover

You don’t necessarily need to save enough to cover the entire cost of college.

Ask yourself: What portion of my child’s education would I like to help pay for?

For example, if you’re planning around the current average cost of an in-state public college, a goal of covering 50% would be about $62,000 over four years.

Your goal could be 25%, 50%, 75% or even 100%. What matters is choosing an amount that makes sense for your family.

A 529 college savings plan can be one option for setting money aside for future education expenses. These accounts are specifically designed for education savings and may offer tax advantages. If you’re interested in learning more, see our previous blog for more info.

Turn Your Goal Into a Monthly Amount

Once you have a target, break it down into smaller contributions.

For example, if you want to save $60,000 over the course of 10 years, consider how you may be able to save $500 per month. 

If $500 doesn’t fit your budget, that’s OK. Even saving $100 a month for 10 years would mean $12,000 in contributions, before considering any potential investment growth.

The right contribution is one you can make consistently while balancing your other financial priorities.

Consider the Other Pieces

Your savings may not be the only resource available when your child goes to college. Scholarships, grants and other financial aid can help reduce the amount families pay. When the time comes, a school’s net price calculator can also help estimate what you may actually pay after grants and scholarships. (U.S. Department of Education)

Depending on the school and your child’s living situation, expenses may include:

• Tuition and fees
• Housing
• Food
• Books and supplies
• Transportation
• Technology
• Personal expenses
• Other school-related costs

That’s why looking at a school’s total cost of attendance is more useful than looking at tuition alone. College Board’s annual student budgets are designed to capture these broader costs. (College Board Newsroom)

Revisit Your Goal Over Time

Your first savings goal doesn’t have to be your final one. As your child gets older, their education plans may become clearer and your financial situation may change, you may be able to adjust your goal.

The Takeaway

A goal doesn’t have to be perfect. It just needs to give you somewhere to start.

Look at today’s college costs, decide how much you’d like to contribute and break that amount into manageable contributions. Then check in on your progress and adjust as needed.

The most important part isn’t getting the number exactly right. It’s having a plan for your child’s future.