College and Child Savings Calculator

A 529 plan is a state-sponsored tax-advantaged savings account for education expenses. Contributions grow tax-free and withdrawals for qualified expenses (tuition, room and board, books, fees) are also tax-free at the federal level. Most states offer their own plan with additional state income tax deductions for residents, making it the most tax-efficient way to save for college in the US.

Yes — 529 funds can be used at any accredited college or university in the US and many international institutions. Since 2018, up to $10,000 per year can be used for K-12 tuition. Apprenticeship programs are also eligible. Under the SECURE 2.0 Act (2024), up to $35,000 can be rolled to a Roth IRA if the funds go unused, provided the account is at least 15 years old.

You have several options: change the beneficiary to another family member tax-free, roll up to $35,000 into a Roth IRA (2024 SECURE 2.0 Act, requires 15-year account age and lifetime limit), withdraw for non-education purposes (earnings taxed as income plus a 10% penalty), or keep the account open for grandchildren or future family members.

The College Board reports 2023-24 average costs of $39,400 per year at private colleges and $11,260 per year in-state at public universities (tuition only). A 4-year private degree costs approximately $157,000 in tuition alone; public in-state approximately $45,000. Financial aid, grants, scholarships, and student loans can significantly reduce out-of-pocket costs for eligible families.

A 529 offers immediate state tax deductions and higher contribution limits with no annual cap on contributions. A Roth IRA allows contributions to be withdrawn penalty-free for any purpose, and unused funds remain available for retirement. Parent-owned 529 assets count up to 5.64% in federal financial aid calculations (FAFSA), while Roth IRA balances are not counted — both are worth considering for a comprehensive savings strategy.

A Junior ISA (JISA) is a tax-free savings account for children under 18, available as a Cash JISA or a Stocks and Shares JISA. The annual subscription limit is £9,000 (2024-25). No tax is paid on interest, dividends, or investment growth. The child takes control of the account at 16 but cannot withdraw the funds until they turn 18, at which point the JISA converts to an adult ISA.

The annual JISA limit is £9,000 (2024-25), shared across all Junior ISAs held by the child. Parents, grandparents, and other family members or friends can all contribute up to this combined annual limit. Unused allowance does not carry forward to the next tax year — each April the allowance resets.

A Cash JISA offers security and guaranteed interest (currently 4-5% at many providers). A Stocks and Shares JISA offers higher long-term growth potential but with short-term volatility. With an 18-year investment horizon, a Stocks and Shares JISA has historically outperformed cash by a significant margin. Many families hold both — a Cash JISA for security and a Stocks and Shares JISA for long-term growth.

The JISA automatically converts to an adult ISA at age 18, at which point the child can withdraw for any purpose — university fees, a house deposit, travel, or any other use. There is no restriction on how the money is spent. The funds belong entirely to the child, and parents have no legal claim over the balance once the child reaches adulthood.

Yes — Premium Bonds (NS&I, up to £50,000 per child, tax-free prizes), children savings accounts (easy access or fixed-term from most high-street banks), investment bonds, bare trusts (shares held in the child name), or a regular savings account in the child name. The JISA is generally the most tax-efficient structure for long-term growth due to the complete tax exemption on returns.

Australia has no 529-equivalent dedicated education savings account. Common approaches include: investment bonds (tax-paid growth at 30%, no additional CGT after 10 years), high-interest savings accounts (currently 4-5%), ETF portfolios held in the parent name (capital gains tax applies on sale), and educational endowment policies from insurance companies. Each approach has different tax and access implications.

Also called education bonds or insurance bonds, these are tax-paid investment vehicles where growth is taxed at 30% inside the bond. After 10 years, no additional personal tax is payable on withdrawals — making them highly tax-efficient for long-term savers. Popular providers include Lifeplan, Australian Unity, and Generation Life. Withdrawals can fund education at any time without restriction.

To maintain the 10-year tax benefit of an investment bond, annual contributions in each year cannot exceed 125% of the previous year contributions. If you make no contribution in a year, the 10-year clock restarts from your next contribution. Consistent annual contributions of any amount (even a small top-up) preserve the tax advantages and keep the clock running continuously.

The First Home Super Saver Scheme allows individuals to save for a first home inside their superannuation fund, accessing concessional tax treatment. If you are saving for a child future first home purchase, FHSS can be accessed by the child once they are an adult (18+) and are a first home buyer. It works best as a supplement to direct savings rather than a primary education savings vehicle.

Domestic students at public universities pay HECS-HELP (deferred tuition), with annual costs of approximately $8,000-$15,000 depending on the course. A 3-year degree carries total HECS debt of approximately $25,000-$45,000. Living costs add $20,000-$30,000 per year. International students and private colleges face significantly higher upfront costs, often $30,000-$50,000 per year in tuition alone.

A Registered Education Savings Plan (RESP) is a tax-deferred savings account for a child post-secondary education. Contributions are not tax-deductible but grow tax-deferred inside the plan. When withdrawn as Educational Assistance Payments (EAPs) for qualifying education, the growth is taxed in the student hands — typically at a very low rate since students have little or no other income.

The federal government contributes 20% on the first $2,500 contributed per year per child, up to $500 per year of free government money, with a lifetime CESG limit of $7,200 per child. Lower-income families may qualify for Additional CESG of 10-20% on the first $500 contributed. Maximising the annual $2,500 contribution captures the full annual grant and is the single most powerful step in RESP planning.

The Canada Learning Bond is a government grant of up to $2,000 for children from lower-income families — no contribution to the RESP is required to receive it. The CLB pays $500 in the first eligible year and $100 per year thereafter until age 15, provided income criteria are met each year. Eligible families should open an RESP as early as possible to capture all available years of CLB payments.

You can transfer the plan to a sibling beneficiary, roll up to $50,000 of accumulated investment growth into your RRSP (if you have contribution room available), or withdraw the growth as an Accumulated Income Payment taxed at your marginal rate plus a 20% penalty. The CESG grants (but not the growth on those grants) must be returned to the federal government.

An RESP captures the free CESG grant money — up to $7,200 over the plan life — which a TFSA cannot. A TFSA is more flexible: withdrawals for any purpose, no impact if the child does not attend school, and no grant repayment risk. The optimal strategy is to maximise RESP contributions to capture the full annual $500 CESG grant ($2,500 contribution per year) and supplement with a TFSA for flexibility.