What College Really Costs and How Much Should You Save
Published May 11, 2026
Last Modified Date May 11, 2026
If you've ever looked at a college tuition bill, you know higher education isn't cheap. But many families still underestimate the total cost. Tuition is only part of the picture. Books, room and board, transportation, and everyday living expenses add up quickly.
Whether college is just around the corner or your child is still in preschool, understanding how much to save for college is the first step toward effective planning. Tools like Bright Start 529's college savings calculator can help you set realistic goals and create a savings plan that works for your family.
Understanding the True Cost of College
When most families think about college costs, tuition comes to mind first. But the full picture includes much more. According to the College Board's 2025 Trends in College Pricing report, the average total cost of attendance at a four-year public college (including tuition, fees, room and board, books, and supplies) is approximately $30,990 per year for in-state students. For private nonprofit institutions, that figure rises to around $65,470 per year.1
These are published prices, and many families pay less. After accounting for grants and financial aid, the average net tuition and fees for first-time full-time students drop to approximately $2,300 per year at public four-year institutions and $16,910 at private nonprofit four-year institutions. Your family's actual costs will depend on the institution, financial aid eligibility, and other factors.
College prices have been rising steadily. In 2025-26, published tuition and fees increased by 2.9% at public four-year institutions and 4.0% at private nonprofits before adjusting for inflation, according to the College Board's 2025 report. For families with young children, these trends mean college costs could be higher by the time enrollment arrives.
Beyond tuition and fees and room and board, there are additional expenses to plan for: technology and supplies, health insurance, transportation, and personal expenses. These expenses can add thousands of dollars each year. Understanding the full scope of costs helps you establish more accurate savings goals.
Estimating How Much to Save for College
Knowing what college costs today is helpful, but figuring out how much you should save depends on factors such as your child's age, the type of school they might attend, and how much of the total cost you want to cover through savings.
One common approach is the "one-third rule." This framework suggests planning to cover about one-third of projected costs through savings, with the remaining two-thirds coming from a combination of current income at the time of enrollment, financial aid, scholarships, and student contributions. For example, if you estimate total college costs of $120,000, you might aim to save around $40,000.
This approach can make the goal feel more manageable. Rather than trying to save 100% of projected costs, you're building a foundation that combines with other resources.
Use Bright Start 529's college cost calculator to estimate future expenses based on your child's age and your savings goals. The calculator factors in tuition inflation to give you a realistic monthly savings target.
The key is to start where you are, stay consistent, and take advantage of tax-advantaged accounts like a 529 plan.
Leveraging 529 Plans to Reach College Savings Goals
A 529 college savings plan is one of the most compelling ways to save for higher education. It offers tax advantages and flexibility that can help your savings grow over time.
Tax-Advantaged Growth
With Bright Start 529, your contributions grow tax-deferred. When it's time to withdraw funds for qualified expenses like tuition, books, room and board, and required supplies, those withdrawals are tax-free.2 This means more of what you save goes toward your child's education.
Illinois taxpayers can also deduct Bright Start 529 contributions on their state income tax return, up to $10,000 for individuals and $20,000 for couples filing jointly.
Flexibility for Changing Plans
As the account owner, you maintain control over the funds. If your child receives a scholarship, you can withdraw up to the scholarship amount in the same year without incurring the 10% federal penalty (though income tax may apply to earnings). You can also change the beneficiary to another eligible family member if plans change, hold on to the account for graduate school, or roll over unused funds to a Roth IRA for the beneficiary (up to $35,000 lifetime limit per beneficiary, subject to conditions).3
Multiple Investment Options
Bright Start 529 offers a range of investment portfolios to match different goals and comfort levels:
- Enrollment year portfolios automatically adjust their investment mix as your child approaches college, shifting from growth-focused investments to more conservative investments over time
- Static allocation portfolios maintain a fixed asset allocation, giving you consistency if you prefer to choose your own risk level
- Individual portfolios offer a single-fund approach for those who want more control over their investment selection
Strategies for Catching Up on College Savings
Starting later than you'd planned? You're not alone, and it's still possible to make meaningful progress.
Increase Contributions Over Time
Even small increases can add up. Set up automatic contributions and consider increasing them annually when your budget allows, such as after a raise. Combined with potential investment growth, incremental increases can make a real difference.
Invite Family to Contribute
Encourage grandparents, aunts, uncles, and family friends to contribute to your child's Bright Start 529 account through Ugift®. If they're Illinois taxpayers, they may also be eligible for a state tax deduction on their contributions.4
Prioritize Consistency
Steady, recurring contributions can be more effective than waiting to make large deposits. Regular contributions help you take advantage of potential market growth over time.
Put Unexpected Funds to Work
When you receive a bonus, tax refund, or other windfall, consider directing some or all of it to your 529 account. It's a way to boost your savings without stretching your monthly budget.
Every contribution counts, no matter the size.
