529 College Savings Plan Statistics

By

Lyss Welding

Updated on January 5, 2023

Edited by

Reece Johnson

• Fact-checked by Marley Hall

Learn more about our editorial process

The average 529 balance is $25,903 — that can make a dent in college tuition. Learn how much money people save for college using these special accounts.

Credit: Image Credit: MoMo Productions / Stone / Getty Images

College Savings Plans Statistics

• 56% of parents were saving for their children’s college.
• On average, parents had saved $18,135 for their child to attend college.

• 33% of families used college savings plans (such as a 529) to help pay for college.
• The average college savings plan amount they used to help pay for college was $6,872.
• On average, college savings plan holders could cover 10% of the total cost of college.

Types of College Savings Plans

• 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.

• 30% of all college savings were held in 529 college savings plans.
• 22% were in general savings accounts.
• 14% were in investment accounts, but not specifically college savings investment accounts.
• 8% were in prepaid tuition state plans.
• 2% were held in Coverdell ESAs.
• The rest were held in various other ways, from general savings accounts to piggy banks to bonds to bitcoin.

• In 2022, less than half of parents (43%) and about one-third of students (31%) correctly identified 529 plans as savings accounts designed for education savings.^{Note Reference [2]}
• Only 17% of college students and their parents correctly identified Coverdell ESAs as savings accounts designed for education savings.^{Note Reference [2]}

College Savings Plan Balances by Age

College Savings Plan Use by Income

• On average, families making over $150,000 a year contributed four times as much money to their children’s education from college savings plans than families making less than $50,000 a year.^{Note Reference [2]}
• Families making over $150,000 a year used college savings plans to cover 15% of their children’s college expenses.^{Note Reference [2]}
• Families making less than $35,000 could cover 6% of their children’s college expenses with college savings plans.^{Note Reference [2]}

College Savings Plan Use by Race and Ethnicity

• On average, white families used college savings plans to cover about one-tenth (11%) of their children’s college expenses.^{Note Reference [2]}
• Black families used college savings plans to cover 4% of the total cost of college.^{Note Reference [2]}
• The average amount white families spent on college using college savings plans was about 3.6 times as much as Black families and nearly double Latino/a families.^{Note Reference [2]}

529 College Savings Plans

• As of June 2022, there were 15.9 million 529 accounts in the U.S.^{Note Reference [3]}
• In total, Americans had $412.5 billion saved in 529 plans^{Note Reference [3]} — a steep decrease from June 2021’s total balance of $464.3 billion.^[6]

Average 529 Balance and More Savings Statistics

• In June 2022, the average 529 balance was $25,903.^{Note Reference [3]}
• In June 2021, the average 529 balance was much higher at $30,287.^{Note Reference [6]}
• The vast majority of 529 funds are in 529 college savings plans, not 529 prepaid tuition accounts. Americans held over $388.2 billion in college savings accounts and about $24.2 billion in prepaid tuition accounts.^{Note Reference [5]}
• 38% of 529 accounts were receiving automatic contributions as of June 2022.^{Note Reference [3]}

529 Balance Over Time

• I don’t have enough money to save in that type of account. (22%)
• I don’t know enough about 529 college savings plans. (19%)
• I would rather save for college a different way. (12%)

More Facts About 529 College Savings Plans

• Every state except Wyoming has a 529 plan.^{Note Reference [4]}
• Washington, D.C., also offers a 529 plan, and there is one non-state-affiliated 529 plan for private colleges.^{Note Reference [4]}
• According to the Financial Industry Regulatory Authority (FINRA), you can deduct your contributions to a state-sponsored 529 plan from your taxes in more than 30 states.^[8]
• Normally, you can’t give someone more than $15,000 in a year without getting taxed for it. Not so for 529s! You could contribute a lump sum of $75,000 to someone’s 529 plan in a year without paying a gift tax. (That said, you won’t be able to make tax-free gifts for the next five years.)^{Note Reference [8]}
• You can use up to $10,000 of a 529 plan to repay qualified student loans.^{Note Reference [8]}
• You can also spend money from some 529 college savings plans on K-12 education expenses.^{Note Reference [8]}

• 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 your tax breaks. These plans typically come with higher fees than direct-sold plans.

• 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

529 Balances by State

1. Virginia ($85.2 billion)
2. New York ($40.2 billion)
3. Nevada ($34.7 billion)
4. New Hampshire ($21.5 billion)
5. Utah ($18.3 billion)

Frequently Asked Questions About 529 College Savings Plans

What is a 529 college savings plan?

What are the best 529 college savings plans?

How much should I be saving for college?