A decade ago, saving $100,000 per child for college seemed generous, even excessive. Fast forward to 2025, and that same figure barely covers two years at a top-tier private university. For high earners navigating six-figure incomes alongside rising education costs, the question isn’t whether to save – it’s how much is actually enough.
Setting Your 529 Plan Savings Goal Per Child
Private universities now charge between $55,000 and $100,000 annually for tuition, room, and board. That translates to $220,000 to $400,000 for a four-year degree. Even flagship state schools have crept upward, with in-state tuition ranging from $6,352 in Wyoming to $20,644 in Pennsylvania. Add living expenses, books, and fees, and most families face $25,000 to $35,000 per year at public institutions.
The challenge intensifies for high-income professionals who earn too much to qualify for financial aid yet struggle to cash-flow $80,000 annually per child without derailing retirement savings. Understanding these pressures is part of the broader financial challenges HENRYs face in 2025, where lifestyle costs and wealth-building compete for the same dollars
In-State Flagship Remains the Gold Standard
The most popular strategy among experienced high earners centers on funding the full cost of an in-state flagship university. This approach typically requires $150,000 to $200,000 per child in today’s dollars, accounting for tuition, room, board, and four years of expenses.
One dual-income Pennsylvania family allocated $60,000 to their daughter’s 529 plan plus committed to contributing $10,000 annually from their brokerage account. Their total target: $100,000 to cover a quality public university education. The framework gives their child flexibility-if she chooses a less expensive school or earns scholarships, she keeps the difference.
This baseline strategy protects against both underfunding and the rigidity of overfunded accounts while maintaining skin in the game for students making college choices.
Factors That Shape Your 529 Plan Savings Goal Per Child
Financial professionals with longer time horizons often target $200,000 per child. This amount provides breathing room for out-of-state public universities, partial private school funding, or graduate programs without locking up excessive capital in education-restricted accounts.
A Michigan family with three children took this approach, frontloading $50,000 to $100,000 when each child was born and allowing compound growth to do the heavy lifting. By age 18, those accounts should reach $200,000 to $250,000, enough to fund most undergraduate paths while preserving parental cash flow during the college years.
The beauty of this target lies in its versatility. Leftover funds can transfer to graduate school expenses, roll over to siblings, or convert up to $35,000 to a Roth IRA for the beneficiary after 15 years under new SECURE 2.0 rule
Private University Planning Requires $300,000+
For families committed to funding elite private institutions regardless of acceptance, $300,000 to $400,000 per child becomes the realistic floor. A Boston-area couple calculated that top-tier schools now cost approximately $100,000 annually once all expenses factor in, driving their 529 savings goal to $400,000 per child.
Several high earners employ a hybrid funding strategy: they save conservatively in 529 plans for public university costs, then supplement from taxable brokerage accounts if children attend more expensive schools. This approach avoids overfunding penalties while maintaining flexibility for families whose children may pursue trade schools, entrepreneurship, or non-traditional paths.
State Tax Benefits Drive Contribution Timing
Many states offer tax deductions for 529 contributions, with benefits ranging from $1,000 in Massachusetts to unlimited deductions in states like Colorado, New Mexico, and South Carolina. A Texas family contributes $10,000 yearly to maximize their state tax benefit, projecting $350,000 to $400,000 by college age assuming normal market returns.
This strategy balances tax optimization with portfolio diversification-once the state deduction maxes out, additional education savings can flow to taxable accounts offering greater flexibility. Learning how to maximize your 401(k) contributions as a high earner can complement your 529 strategy by ensuring retirement savings progress alongside education funding.
Your Action Plan
Calculate your baseline target: Use an online college cost estimator to project four-year expenses at your state flagship university, adjusting for your child’s age and estimated tuition inflation.
Front-load when possible: Depositing $50,000 to $100,000 in the first few years of a child’s life maximizes compound growth over 15+ years.
Maximize state tax benefits first: Contribute up to your state’s annual deduction limit before shifting additional savings to more flexible vehicles.
Build a supplemental fund: High earners benefit from maintaining a separate brokerage account earmarked for education that can cover shortfalls, graduate school, or convert to other uses without 529 withdrawal penalties.
Set expectations early: Many successful families share 529 balances with teenagers during the college search process, creating natural guardrails around affordability and personal responsibility.
Finding Your Number
The 529 plan savings goal per child depends less on universal benchmarks and more on your family’s values around education funding. Some high earners prioritize complete financial freedom for their children, while others intentionally create boundaries that encourage merit scholarships or cost-conscious decisions.
The common thread among financially successful families isn’t a specific dollar amount-it’s starting early, contributing consistently, and remaining flexible as both college costs and family circumstances evolve. Whether your target lands at $150,000 for flagship coverage or $400,000 for unlimited choice, the goal remains the same: giving the next generation educational opportunity without sacrificing your own financial security.
For many HENRYs, college savings is just one piece of a comprehensive FIRE planning strategy that balances multiple financial goals across different time horizons
