Successful Saving Starts With a Strategy

Build Your Strategy With Our Tools and Expert Insights

Since 2001, the T. Rowe Price College Savings Plan has been helping families save for college and other qualified education expenses. We're here to provide you with the tools and resources to build a savings strategy in a few simple steps.

Step 1: Compare College Savings Options

Figuring out which college savings option is the best fit for your family isn’t always straightforward. Should you save in a 529 college savings plan account? A traditional savings account? A taxable brokerage account? A Roth IRA? The optimal choice may depend on your circumstances, budget, and goals; however, saving in a 529 plan offers distinct advantages. Some benefits are:

  • You control the account and can change the beneficiary at any time, subject to IRS regulations.
  • There are no income restrictions, and any earnings are tax-deferred.
  • Distributions are exempt from federal income tax if used for qualified education expenses.


Step 2: Determine How Much to Save

Once you’ve decided which college savings option is right for you, you’ll need to figure out how much to save. Our College Savings Calculator provides customized projections and important information on how a tax-advantaged 529 plan can help. Estimate your future college expenses and create a plan to start saving.


T. Rowe Price Certified Financial Planners Judith Ward and Roger Young recommend the 50% rule of thumb. This rule advises that parents should aim to save enough to cover 50% of the published cost of college – which is around what most parents end up paying.


Step 3: Choose the Right Investment Option and Open an Account

Selecting the appropriate portfolio is important. We have a variety of investment options to fit your strategic approach, whether school is fast-approaching or you’ve got years ahead.


You can open an account today in about 15 minutes with as little as $50 a month or a $250 initial contribution.


Step 4: Shape Your Strategy With Our Tools and Expert Insights

We are committed to helping families plan and save for future education expenses. Once you’ve opened an account, we provide a suite of tools and resources to help you evaluate, shape, and strengthen your strategy.


Frequently Asked Questions

How much should I be saving?


Use our College Savings Calculator to help estimate how much you may need to save for your future college costs and to set monthly...

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How and where can I use my 529 savings?


Your account balance can be used for any purpose. However, for the distributions to be federally tax-free, you have to...

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