It appears that by saving in a 529 College Savings Plan you would accumulate $31,722 ($26,943 after taxes upon withdrawal) vs. $24,793 in a taxable savings account. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable Account vs. 529 College Savings Plan' xAxisName='Year' numberPrefix='$' 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='10624.0' /><set value='11287.0' /><set value='11991.0' /><set value='12739.0' /><set value='13534.0' /><set value='14379.0' /><set value='15276.0' /><set value='16229.0' /><set value='17242.0' /><set value='18318.0' /><set value='19461.0' /><set value='20676.0' /><set value='21966.0' /><set value='23336.0' /><set value='24793.0' /></dataset><dataset seriesName='529 Savings Plan' color='F58127'><set value='10800.0' /><set value='11664.0' /><set value='12597.0' /><set value='13605.0' /><set value='14693.0' /><set value='15869.0' /><set value='17138.0' /><set value='18509.0' /><set value='19990.0' /><set value='21589.0' /><set value='23316.0' /><set value='25182.0' /><set value='27196.0' /><set value='29372.0' /><set value='31722.0' /></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>$0</td><td>$10,000</td><td>$800</td><td>$176</td><td>$10,624</td><td>$10,000</td><td>$800</td><td>$10,800</td></tr><tr><td role="rowheader" scope="row">2</td><td>0</td><td>10,624</td><td>850</td><td>187</td><td>11,287</td><td>10,800</td><td>864</td><td>11,664</td></tr><tr><td role="rowheader" scope="row">3</td><td>0</td><td>11,287</td><td>903</td><td>199</td><td>11,991</td><td>11,664</td><td>933</td><td>12,597</td></tr><tr><td role="rowheader" scope="row">4</td><td>0</td><td>11,991</td><td>959</td><td>211</td><td>12,739</td><td>12,597</td><td>1,008</td><td>13,605</td></tr><tr><td role="rowheader" scope="row">5</td><td>0</td><td>12,739</td><td>1,019</td><td>224</td><td>13,534</td><td>13,605</td><td>1,088</td><td>14,693</td></tr><tr><td role="rowheader" scope="row">6</td><td>0</td><td>13,534</td><td>1,083</td><td>238</td><td>14,379</td><td>14,693</td><td>1,175</td><td>15,869</td></tr><tr><td role="rowheader" scope="row">7</td><td>0</td><td>14,379</td><td>1,150</td><td>253</td><td>15,276</td><td>15,869</td><td>1,269</td><td>17,138</td></tr><tr><td role="rowheader" scope="row">8</td><td>0</td><td>15,276</td><td>1,222</td><td>269</td><td>16,229</td><td>17,138</td><td>1,371</td><td>18,509</td></tr><tr><td role="rowheader" scope="row">9</td><td>0</td><td>16,229</td><td>1,298</td><td>286</td><td>17,242</td><td>18,509</td><td>1,481</td><td>19,990</td></tr><tr><td role="rowheader" scope="row">10</td><td>0</td><td>17,242</td><td>1,379</td><td>303</td><td>18,318</td><td>19,990</td><td>1,599</td><td>21,589</td></tr><tr><td role="rowheader" scope="row">11</td><td>0</td><td>18,318</td><td>1,465</td><td>322</td><td>19,461</td><td>21,589</td><td>1,727</td><td>23,316</td></tr><tr><td role="rowheader" scope="row">12</td><td>0</td><td>19,461</td><td>1,557</td><td>343</td><td>20,676</td><td>23,316</td><td>1,865</td><td>25,182</td></tr><tr><td role="rowheader" scope="row">13</td><td>0</td><td>20,676</td><td>1,654</td><td>364</td><td>21,966</td><td>25,182</td><td>2,015</td><td>27,196</td></tr><tr><td role="rowheader" scope="row">14</td><td>0</td><td>21,966</td><td>1,757</td><td>387</td><td>23,336</td><td>27,196</td><td>2,176</td><td>29,372</td></tr><tr><td role="rowheader" scope="row">15</td><td>0</td><td>23,336</td><td>1,867</td><td>411</td><td>24,793</td><td>29,372</td><td>2,350</td><td>31,722</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>