It appears that by saving in a 529 College Savings Plan you would accumulate $90,370 ($79,289 after taxes upon withdrawal) vs. $75,163 in a taxable savings account. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable Account vs. 529 College Savings Plan' xAxisName='Year' numberPrefix='$' bgColor='FFFFFF' showBorder='0' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='' /><category label='3' /><category label='' /><category label='5' /><category label='' /><category label='7' /><category label='' /><category label='9' /><category label='' /><category label='11' /><category label='' /><category label='13' /><category label='' /><category label='15' /></categories><dataset seriesName='Taxable Account' color='0B9191'><set value='12749.0' /><set value='15669.0' /><set value='18772.0' /><set value='22068.0' /><set value='25570.0' /><set value='29290.0' /><set value='33243.0' /><set value='37442.0' /><set value='41903.0' /><set value='46642.0' /><set value='51678.0' /><set value='57027.0' /><set value='62710.0' /><set value='68748.0' /><set value='75163.0' /></dataset><dataset seriesName='529 Savings Plan' color='F58127'><set value='12960.0' /><set value='16157.0' /><set value='19609.0' /><set value='23338.0' /><set value='27365.0' /><set value='31714.0' /><set value='36411.0' /><set value='41484.0' /><set value='46963.0' /><set value='52880.0' /><set value='59271.0' /><set value='66172.0' /><set value='73626.0' /><set value='81676.0' /><set value='90370.0' /></dataset></chart>"); // --> </script> <ul><li><a href="saving-for-college">How much should I be saving for college?</a></li><li><a href="student-loan-repayment">Will I be able to pay back my student loans?</a></li><li><a href="coverdell-esa">What are the advantages of a Coverdell ESA?</a></li><li><a href="529-college-savings-plan">What are the advantages of a 529 college savings plan?</a></li><li><a href="value-of-college-education">What is the value of a college education?</a></li><li><a href="parent-plus-loan">What are the payments on a parental (PLUS) loan?</a></li><li><a href="living-on-or-off-campus">Should I live at home, on campus, or off campus?</a></li><li><a href="when-to-start-saving-for-college">When should I begin saving for my child's college?</a></li></ul><table class='pure-table pure-table-bordered' role='grid'><tr><th colspan='6' class='section'>Taxable Account</th><th colspan='3' class='section'>529 Plan</th></tr><tr><th scope="col">Year</th><th scope="col">Savings Amount</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 8.00%</th><th scope="col">Taxes @ 22.00%</th><th scope="col">Ending Balance</th><th scope="col">Beginning Balance</th><th scope="col">Interest @ 8.00%</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$2,000</td><td>$12,000</td><td>$960</td><td>$211</td><td>$12,749</td><td>$12,000</td><td>$960</td><td>$12,960</td></tr><tr><td role="rowheader" scope="row">2</td><td>2,000</td><td>14,749</td><td>1,180</td><td>260</td><td>15,669</td><td>14,960</td><td>1,197</td><td>16,157</td></tr><tr><td role="rowheader" scope="row">3</td><td>2,000</td><td>17,669</td><td>1,414</td><td>311</td><td>18,772</td><td>18,157</td><td>1,453</td><td>19,609</td></tr><tr><td role="rowheader" scope="row">4</td><td>2,000</td><td>20,772</td><td>1,662</td><td>366</td><td>22,068</td><td>21,609</td><td>1,729</td><td>23,338</td></tr><tr><td role="rowheader" scope="row">5</td><td>2,000</td><td>24,068</td><td>1,925</td><td>424</td><td>25,570</td><td>25,338</td><td>2,027</td><td>27,365</td></tr><tr><td role="rowheader" scope="row">6</td><td>2,000</td><td>27,570</td><td>2,206</td><td>485</td><td>29,290</td><td>29,365</td><td>2,349</td><td>31,714</td></tr><tr><td role="rowheader" scope="row">7</td><td>2,000</td><td>31,290</td><td>2,503</td><td>551</td><td>33,243</td><td>33,714</td><td>2,697</td><td>36,411</td></tr><tr><td role="rowheader" scope="row">8</td><td>2,000</td><td>35,243</td><td>2,819</td><td>620</td><td>37,442</td><td>38,411</td><td>3,073</td><td>41,484</td></tr><tr><td role="rowheader" scope="row">9</td><td>2,000</td><td>39,442</td><td>3,155</td><td>694</td><td>41,903</td><td>43,484</td><td>3,479</td><td>46,963</td></tr><tr><td role="rowheader" scope="row">10</td><td>2,000</td><td>43,903</td><td>3,512</td><td>773</td><td>46,642</td><td>48,963</td><td>3,917</td><td>52,880</td></tr><tr><td role="rowheader" scope="row">11</td><td>2,000</td><td>48,642</td><td>3,891</td><td>856</td><td>51,678</td><td>54,880</td><td>4,390</td><td>59,271</td></tr><tr><td role="rowheader" scope="row">12</td><td>2,000</td><td>53,678</td><td>4,294</td><td>945</td><td>57,027</td><td>61,271</td><td>4,902</td><td>66,172</td></tr><tr><td role="rowheader" scope="row">13</td><td>2,000</td><td>59,027</td><td>4,722</td><td>1,039</td><td>62,710</td><td>68,172</td><td>5,454</td><td>73,626</td></tr><tr><td role="rowheader" scope="row">14</td><td>2,000</td><td>64,710</td><td>5,177</td><td>1,139</td><td>68,748</td><td>75,626</td><td>6,050</td><td>81,676</td></tr><tr><td role="rowheader" scope="row">15</td><td>2,000</td><td>70,748</td><td>5,660</td><td>1,245</td><td>75,163</td><td>83,676</td><td>6,694</td><td>90,370</td></tr></table><h2>Further Resources</h2><ul style="list-style: unset !important;"><li>Read <a href="https://www.moneyhelpcenter.com/article/saving-for-child-college-education/" target="_blank">other ways you can prepare for your child's college education.</a></li><li>Calculate <a href="https://www.moneyhelpcenter.com/college-career/calculate/much-saving-college/" target="_blank">how much you should be saving for college.</a></li><li>Discuss <a href="https://www.moneyhelpcenter.com/the-real-cost-college/" target="_blank">the real costs of college.</a></li><li>Calculate <a href="https://www.moneyhelpcenter.com/college-career/calculate/begin-saving-childs-college/" target="_blank">when you should begin saving for college.</a></li><li>Calculate <a href="https://www.moneyhelpcenter.com/college-career/calculate/payments-parental-plus-loan/" target="_blank">the payments on a parental (PLUS) loan.</a></li></ul>