It appears that by saving in a 529 College Savings Plan you would accumulate $206,618 ($182,590 after taxes upon withdrawal) vs. $174,667 in a taxable savings account. <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Taxable Account vs. 529 College Savings Plan' xAxisName='Year' numberPrefix='$' 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' /></categories><dataset seriesName='Taxable Account' color='0B9191'><set value='42284.0' /><set value='50022.0' /><set value='58242.0' /><set value='66976.0' /><set value='76255.0' /><set value='86113.0' /><set value='96586.0' /><set value='107712.0' /><set value='119533.0' /><set value='132092.0' /><set value='145434.0' /><set value='159608.0' /><set value='174667.0' /></dataset><dataset seriesName='529 Savings Plan' color='F58127'><set value='42984.0' /><set value='51607.0' /><set value='60919.0' /><set value='70977.0' /><set value='81839.0' /><set value='93570.0' /><set value='106240.0' /><set value='119923.0' /><set value='134701.0' /><set value='150661.0' /><set value='167898.0' /><set value='186513.0' /><set value='206618.0' /></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>$4,800</td><td>$39,800</td><td>$3,184</td><td>$700</td><td>$42,284</td><td>$39,800</td><td>$3,184</td><td>$42,984</td></tr><tr><td role="rowheader" scope="row">2</td><td>4,800</td><td>47,084</td><td>3,767</td><td>829</td><td>50,022</td><td>47,784</td><td>3,823</td><td>51,607</td></tr><tr><td role="rowheader" scope="row">3</td><td>4,800</td><td>54,822</td><td>4,386</td><td>965</td><td>58,242</td><td>56,407</td><td>4,513</td><td>60,919</td></tr><tr><td role="rowheader" scope="row">4</td><td>4,800</td><td>63,042</td><td>5,043</td><td>1,110</td><td>66,976</td><td>65,719</td><td>5,258</td><td>70,977</td></tr><tr><td role="rowheader" scope="row">5</td><td>4,800</td><td>71,776</td><td>5,742</td><td>1,263</td><td>76,255</td><td>75,777</td><td>6,062</td><td>81,839</td></tr><tr><td role="rowheader" scope="row">6</td><td>4,800</td><td>81,055</td><td>6,484</td><td>1,427</td><td>86,113</td><td>86,639</td><td>6,931</td><td>93,570</td></tr><tr><td role="rowheader" scope="row">7</td><td>4,800</td><td>90,913</td><td>7,273</td><td>1,600</td><td>96,586</td><td>98,370</td><td>7,870</td><td>106,240</td></tr><tr><td role="rowheader" scope="row">8</td><td>4,800</td><td>101,386</td><td>8,111</td><td>1,784</td><td>107,712</td><td>111,040</td><td>8,883</td><td>119,923</td></tr><tr><td role="rowheader" scope="row">9</td><td>4,800</td><td>112,512</td><td>9,001</td><td>1,980</td><td>119,533</td><td>124,723</td><td>9,978</td><td>134,701</td></tr><tr><td role="rowheader" scope="row">10</td><td>4,800</td><td>124,333</td><td>9,947</td><td>2,188</td><td>132,092</td><td>139,501</td><td>11,160</td><td>150,661</td></tr><tr><td role="rowheader" scope="row">11</td><td>4,800</td><td>136,892</td><td>10,951</td><td>2,409</td><td>145,434</td><td>155,461</td><td>12,437</td><td>167,898</td></tr><tr><td role="rowheader" scope="row">12</td><td>4,800</td><td>150,234</td><td>12,019</td><td>2,644</td><td>159,608</td><td>172,698</td><td>13,816</td><td>186,513</td></tr><tr><td role="rowheader" scope="row">13</td><td>4,800</td><td>164,408</td><td>13,153</td><td>2,894</td><td>174,667</td><td>191,313</td><td>15,305</td><td>206,618</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>