By choosing to make regular contributions that fit your budget, you can ensure that saving for college becomes a part of your monthly investment strategy. And this will get you in the habit of planning for the future.
You can instill this discipline by setting up an Automatic Investment Plan (AIP). 1 Whether your monthly budget is $50 or $250, transferring a fixed amount into a 529 account can add up over time.
The chart below shows how an investment could grow over 18 years, using an automatic investment plan with regular monthly investments of $50, $100 or $250.
This chart assumes a net 5% annual rate of return. The calculations are for illustrative purposes only, and the results are not indicative of the performance of any investments. The calculations do not reflect any plan fees or charges that may apply. If such fees or charges were taken into account, returns would have been lower. With any long-term investment, investment return may vary.