529 College Savings Plan Statistics
Credit: Image Credit: MoMo Productions / Stone / Getty ImagesData Summary
In 2024, 59% of families reported having a plan to pay for all years of college before their child enrolled.[1]- 35% of families used college savings plans to help pay for college.Note Reference [1]
- In a 2018 survey, parents saving for their young children (ages 0-6) had saved an average of $9,200 in a 529 account.[2]
- As of June 2024, there were 16.8 million 529 accounts in the U.S.[3]
- The average 529 balance was $30,295.Note Reference [3]
- Every state except Wyoming has a 529 plan.[4]
- Five states account for almost half (48%) of the money saved in 529 plans in the entire U.S.[5]
College costs continue to creep up. In fact, the average college tuition inflation rate from 2000-2022 is 5% per year. If you’re trying to save for your child or grandchild’s future education, it can seem impossible to prepare.
College savings accounts, such as 529 plans, are specially designed to save money for higher education. They come in the form of investment portfolios — which grow or shrink with the stock market — and prepaid tuition accounts, which can lock in future tuition costs at today’s prices.
This report covers information and statistics about college savings plans. We’ll also dive deeper into the most popular college savings accounts: 529 plans.
Table of Contents
College Savings Plans Statistics
According to a 2024 survey by Sallie Mae and Ipsos, 59% of families had a plan to pay for every year of their child’s college education before they enrolled.Note Reference [1]
Just over one-third (35%) used a college savings plan, defined in further detail below, to help pay for college.
Types of College Savings Plans
Savers can use a variety of college savings plans to help pay for college, including:
- 529 College Savings Plans: Tax-advantaged, state-sponsored investment accounts that gain or lose money with the stock market.
- 529 Prepaid Tuition Plans: A “pay now, save later” approach, where you can lock in the current tuition rate for your child or another beneficiary to attend college in the future.
- Coverdell Education Savings Accounts (ESAs): Tax-advantaged savings accounts available through banks. Only folks making under a certain income can apply, and you can’t invest more than $2,000 a year.
Savers also might use other means to save for college, like starting an investment account that isn’t designated for college savings or keeping money in a general savings or checking account.
College Savings Plan Balances by Age
The table below shows the average amount of college savings by age, reported by families in a 2018 Sallie Mae and Ipsos survey.
| Child’s Age in years | Average Amount Saved in a 529 College Savings Plan | Average Amount Saved in Coverdell ESA | Average Amount Saved in a Prepaid State Plan |
|---|---|---|---|
| 0-6 | $9,196 | $506 | $1,656 |
| 7-12 | $14,787 | $6,018 | $3,415 |
| 13-17 | $24,618 | $6,578 | $7,354 |
| 18+ | $25,596 | $9,490 | $26,450 |
Say your child or grandchild is very young and many years away from college. Then, any money they have in a college savings account has plenty of time to grow. You could keep their savings in a riskier investment since there’s more time for their funds to recover if the stock market takes a hit.
If your child is older, there’s less time for their money to grow. There’s also less time to recover from a dip in the stock market, so you’ll probably look at more conservative (lower risk, lower reward) investment options.
On average, parents who opened a college savings plan for their children had more money saved the older their children were.
College Savings Plan Use by Income
On average, wealthier families were able to contribute more to their children’s education using a college savings plan.
| Family Income | Average Contribution | Average Percentage of Total Cost of College |
|---|---|---|
| <$50,000 | $1,697 | 6% |
| $50,000-<$100,000 | $1,818 | 7% |
| $100,000-$150,000 | $2,893 | 10% |
| $150,000+ | $5,147 | 19% |
529 College Savings Plans
The College Savings Plan Network (CSPN) is the leading source for information about 529 college savings plans. According to CSPN, as of June 2024, there were 16.8 million 529 accounts in the U.S.Note Reference [3]
- In total, people in the U.S. had $508 billion saved in 529 plans.
- In June 2024, the average 529 balance was $30,295.
- 38% of 529 accounts were receiving automatic contributions as of June 2024
529 Balance Over Time
The average 529 balance has generally increased over the years.Note Reference [5]
The average 529 balance has only decreased during the economic downturns of 2008 and 2022.5 It’s possible that more people were drawing money out of their 529 plans to return to school during the 2008 recession. People also could have paused contributions to 529 plans in uncertain economic times.
529 Plan Basics
529 plans can be direct-sold or advisor-sold. Many states have both options available.
- In Direct-Sold Plans: You choose or change your investments yourself. These typically have lower fees than advisor-sold plans.
- In Advisor-Sold Plans: An investment pro can help you make decisions to maximize savings and tax breaks. These plans typically have higher fees than direct-sold plans.
Additionally, each state’s 529 plan offers a variety of portfolio options you can choose to invest in, including:
- Aggressive, Moderate, and Conservative Portfolios: The more aggressive the investment strategy, the higher the risk and the potential reward
- Target-Date Portfolios: Target portfolios focus on maximizing your investment for a specific year, like your child or grandchild’s high school graduation.
- And Many Other Options
What Happens If My Child Doesn’t Use Their 529 Plan?
According to the Financial Industry Regulatory Authority (FINRA), if you don’t use all the funds in a 529, you can roll over up to $35,000 into a Roth IRA for the beneficiary of the 529. However, the 529 plan must be at least 15 years old, the rollover cannot exceed the annual Roth contribution limit, and the beneficiary must be earning income equal to the rollover amount.[6]
529 Balances by State
States where residents have the most savings in 529 plans aren’t necessarily states with the largest populations.
States with the most college savings include:[7]
- Virginia ($388.2 billion)
- New York ($51.1 billion)
- Nevada ($44.5 billion)
- New Hampshire ($26.7 billion)
- Utah ($24 billion)
In June 2024, these five states alone accounted for nearly half (49%) of money saved in 529 plans in the U.S.
Find the total 529 balance for each state in the table below.
Total College Savings Held in 529 Plans in Millions, 2024
| State⇅ | Total 529 College Savings Assets⇅ | Total 529 Prepaid Tuition Assets⇅ | Total 529 Assets ⇅ |
|---|---|---|---|
| Alabama | $2,883 | $2,676 | $208 |
| Alaska | $10,531 | $10,531 | No data |
| Arizona | $2,323 | $2,323 | No data |
| Arkansas | $1,387 | $1,387 | No data |
| California | $15,581 | $15,581 | No data |
| Colorado | $12,246 | $12,246 | No data |
| Connecticut | $5,985 | $5,985 | No data |
| Delaware | $685 | $685 | No data |
| Florida | $13,839 | $1,426 | $12,413 |
| Georgia | $5,712 | $5,712 | No data |
Frequently Asked Questions About 529 College Savings Plans
529 college savings plans are investment accounts that offer tax advantages, such as the ability to deduct contributions and qualified withdrawals from one’s taxes. They’re typically state-sponsored, and savers can choose their investment portfolios based on how much risk or fees they’re willing to take on.