Zero in on goals
College may seem a long way off, but the sooner you start saving, the better you'll be able to pay for your child's education. Use our calculator to choose a school and the percentage of costs you want to fund. Then learn how much you'll need to save to make it happen.
Know your numbers
My child is
old.
I picture my child attending
for a duration of .
for a duration of .
Where is the school located?
Will you fund additional expenses like room and board?
How would you like to fund your child's college education?
I want to fund 100% of the total cost of my child’s education
I want to fund of the total costs of my child’s education
at a yearly increase of . In recent years, the annual rate of college cost increase has been about 5%. You can select a different rate to use in the calculation.
Your maximum estimated funding goal: $0. Your actual cost may be less than this number.
This estimate is for the published price of the school. You will probably pay the net price The net price is a college's sticker price for tuition and fees minus the grants, scholarships, and education tax benefits you receive. The net price you pay for a particular college is specific to you because it's based on your personal circumstances and the college's financial aid policies. The net price, on average, is considerably lower than the published price., which may be substantially lower.
Your contributions
Don't let the numbers scare you. Slow and steady contributions can make a significant difference. Do you have a lump sum to start with? How much can you set aside each month? Try adjusting these amounts and see how it would affect your total.
Starting investment $
Monthly contribution $
Hypothetical annual growth rate
For illustrative purposes only. Not intended to portray an actual investment.
Total college cost
$0
You want to cover
You would have
$0
Thats 0 Total semesters!
The current monthly contribution covers your funding goal completely!
Review your plan
Your child would attend Rice University in 0.
By then, the estimated out of state tuition and fees would be $0.
Additional expenses, like housing, books and meal plans, would be $0.
Did you know?
58% of families say they created a plan to pay for all years of college before their student enrolled.**
Next, download a PDF of your plan summary and share it with your advisor.
Your goal:
Your total funding goal ()
$0
Your one-time contribution
$0
Your monthly contribution
$0
All costs are based on 3% hypothetical annual college inflation rate. All savings are based on 8% hypothetical annual growth rate.
Try a few different schools or scenarios until you have a few options that feel comfortable for your family. Then print out your plan and take it to your financial professional. Congratulations! You're on your way to giving your child the best gift of all — a college education.
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College
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College savings report | |
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Every step in setting up a 529 education savings plan is worth it because it’s all in preparation for your child’s future. A financial professional can help you open a 529 savings plan. Use this guide to start the conversation and plan next steps. | |
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Here are some questions to ask your financial professional:
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Your plan | ||||||||||
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All costs are based on a hypothetical annual college inflation rate.
All savings are based on a hypothetical annual growth rate.
All savings are based on a hypothetical annual growth rate.
College savings strategies | |
Take advantage
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Opening a college savings account as soon as possible and contributing regularly provide the opportunity for compounding growth over time. So the sooner you start, the more you could grow your savings, and the less you may have to borrow when it comes time for college. |
Consider a
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CollegeAmerica offers the tax advantages, flexibility and control of investing in a 529 savings plan, plus built-in simplicity and quality investment options from the American Funds. Tax-advantaged treatment applies to savings used for qualified education expenses. State tax treatment varies.
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Choose from three
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American Funds College Target Date Series®: Select the target date fund closest to the year in which the beneficiary will likely use the money. The portfolio is monitored on an ongoing basis and grows more preservation-oriented as college approaches. American Funds Portfolio SeriesSM: The Portfolio Series funds of funds available in CollegeAmerica are managed with specific investment objectives in mind: appreciation, balance or preservation. Select the option that best fits your time frame and risk tolerance. The American Funds mutual funds: The individual mutual funds available in CollegeAmerica are good options if you want to build customized portfolios. |
Look for other
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There are other options to consider if you have a savings shortfall and are unable to increase the contribution amount to your college savings account. Invest monetary gifts. Using money from holiday and birthday gifts to fund a college savings account can make a meaningful difference. Explore grants and scholarships. These awards are offered by federal, state and local governments, as well as private and nonprofit organizations and most colleges. The best part: Grants and scholarships, in general, do not need to be paid back. Research student loans. Student loans are offered by federal and most state governments and from private institutions. Of course, student loans must be paid back along with any interest incurred. Take advantage of your local community college. Beginning at a local community college before transferring to a university can reduce overall costs and provide access to an education that might otherwise be out of reach. Contemplate other colleges. Run scenarios in our college calculator using different schools to find other options that are a good fit for your family. |
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* Source: Current annual college cost figures are obtained from Peterson’s. The college costs may include tuition, room and board, and books and expenses as reported by Peterson’s. Copyright © 2021 Peterson’s, a Nelnet Company, and its licensees. All rights reserved. † If a college reports only one value for tuition, the calculator uses the same value for in-state and out-of-state costs. To verify in-state and out-of-state costs for a particular college, please contact the college directly. ‡ Largest by assets, according to the 4Q 2021 529 College Savings Quarterly Data Update from ISS Market Intelligence. As of December 31, 2021, CollegeAmerica AUM is $92.6B. Visit capitalgroup.com for more information about college savings strategies, The CollegeAmerica 529 savings plans and American Funds College Target Date Series. | |
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Definitions & disclosures |
Terms & definitionsProjected college costs: This is the anticipated total price of college (the sum of the projected costs for each year the student plans to attend college). To calculate these yearly costs, the calculator takes the current annual college cost and adjusts for inflation using the college inflation rate specified. Costs you plan to fund: This is the portion of projected college costs you plan to cover (your savings goal). What you’ll have: This is the sum of all contributions (initial investment and subsequent contributions) and the hypothetical growth on those assets. Annual college inflation rate: The yearly rate at which you anticipate college costs will rise. Used to determine future college costs, the rate is assumed at 5%, but can be changed based on school, type, region and other factors. Hypothetical annual growth rate: This is the yearly rate at which you anticipate your investment (college savings) will grow. For illustrative purposes only. Not intended to portray an actual investment. The calculator uses this figure to determine your projected savings. |
Calculation detailsContributionsMonthly contributions begin on the last day of the same month that the calculator is run and continue uninterrupted through the month before the last college payment is made. Ongoing monthly contributions are made on the last day of every month. Since the last college expense falls in July for any given year, the last monthly contribution takes place in June of the same year. Annual contributions begin on the last day of the same year (December 31) that the calculator is run and continue uninterrupted through the year-end before the last college payment is made. Since the last college expense falls in July for any given year, the last annual contribution takes place in December of the preceding year. Contributions are made at the end of the month or year and therefore do not factor into the investment gains for that period. College costsCurrent annual college costs increase at the annual rate of college inflation to determine projected college costs. College payments begin in January of the same year that the student begins college. During the college years, annual college costs are split equally between January and July payments. Payments are deducted from the savings balance at the beginning of the month before the monthly investment growth is calculated. The calculator makes the last college payment in July before the final school year begins. Hypothetical growthSavings grow at the hypothetical annual growth rate through January 1 of the last year of college. Difference you would need to saveIf you come up short, the calculator provides the rate of savings (monthly or annual contribution amount) that, if applied, would have led to projected savings equaling the projected college costs (or portion of costs the user plans to fund). |
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Visit capitalgroup.com for more information about college savings strategies, The CollegeAmerica 529 savings plans and American Funds College Target Date Series. |
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Additional information |
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American Funds College Target Date Series’ allocation strategy does not guarantee that investors’ education savings goals will be met. The target date is the year that corresponds roughly to the year in which the beneficiary is expected to begin taking withdrawals. Investors and their financial professionals should periodically evaluate their investments to determine whether they continue to meet their needs. There are expenses associated with the underlying funds in addition to funds-of-funds expenses. The funds’ risks are directly related to the risks of the underlying funds. For the American Funds Portfolio Series, allocations may not achieve investment objectives. The portfolios’ risks are directly related to the risks of the underlying funds. |
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. Before investing in any state’s 529 plan, investors should consult a tax advisor. CollegeAmerica is sponsored by Virginia529SM. Each target date portfolio is composed of a mix of underlying funds and is subject to the risks and returns of those funds. Underlying funds may be added or removed during the year. Investment professionals gradually adjust the portfolio over time so that it becomes more preservation-oriented. The allocation strategy does not guarantee that investors’ education savings goals will be met. The target date is the year that corresponds roughly to the year in which the beneficiary is expected to begin taking withdrawals. Investors and their financial professionals should periodically evaluate their investment to determine whether it continues to meet their needs. All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies. This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice. Capital Group | American Funds Lit. No. CAGEBR-008-0622O CGD/9318-S80493 © 2022 Capital Group. All rights reserved. American Funds Distributors, Inc., member FINRA. |