investing small amounts

Investing Small Amounts

Not everyone finds it easy to save for college.
A my529 account can help.

Why save for college?

  • Student debt is rising nationwide.
  • More saved means less debt.
  • Cover some costs, if not all.

Investing small sums regularly over time can help make higher education more affordable.

All numbers are my529 estimates. Earnings on a my529 account assume a contribution of $40 per month at account opening and a 5 percent annual rate of return compounded monthly over 18 years.

Saving vs. borrowing:

It is said that saving is a virtue. Saving also has its advantages over borrowing. Consider the comparison of saving toward a goal of $20,000 and borrowing $20,000. Each dollar saved is a dollar you don’t need to borrow and repay with interest.

All numbers are my529 estimates. Earnings on a my529 account over 18 years assume a contribution of $57.04 at account opening and on the first day of each month, with a 5% rate of return compounded monthly. The monthly loan repayment assumes a 7% interest rate and a 10-year repayment period. Numbers are rounded. This chart is to be used for illustrative purposes only.

Related Topics

who can participate

Who Can Participate?

Utah residents

my529’s Low Fees

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Tax Advantages

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Qualified Expenses

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College Savings Estimator