Schwab MoneyWise ®
Schwab MoneyWise®

Planning for a Child's Education

Getting a head start on saving

While it may seem a bit early to think about college, rising education costs are a fact of life. And it's never too soon to start saving and taking advantage of the .

Consider that a family who begins to save just $100 a month at a child's birth can accumulate almost $35,000 by the time the child is 18, earning 5 percent interest per year. Wait until the child is 10 years old to start saving, and that's reduced to less than $12,000.

Here are some ideas to help you get started:
  • Estimate how much you need to save for college.
  • Learn about and compare tax-advantaged .
  • Once you've opened an account, set up monthly deposits and add extra funds when possible. Contributing regularly through an automatic investment plan can make it easier.


Turning 50?

Get financial answers for this important stage of life.

New Book

Your Feedback

Do you have a question or comment about family finances?

Let Us Know

Investing involves risk, including possible loss of principal.

The information on this website is for educational purposes only. It is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner, or investment manager.

The Charles Schwab Foundation is a 501(c)(3) nonprofit, private foundation that is not part of Charles Schwab & Co., Inc. or its parent company, The Charles Schwab Corporation.

Charles Schwab & Co., Inc. ("Schwab"). All rights reserved. Member SIPC.