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Have you ever wondered what other CollegeAdvantage Direct Plan account owners contribute annually? Are you curious about account balance trends? Wondering how you compare? Here’s some information about averages that we think you might find interesting.
Average Annual Contributions:
- Of Direct Plan account owners who are actively contributing to their accounts, the average annual contribution in 2013 was $2,900.
Average Account Balance: (as of November 30, 2014)
- By the time a beneficiary is age 3, the average Direct Plan account balance is $8,741.
- By the time a beneficiary reaches age 17, the average Direct Plan account balance is $24,810.
- The average account balance is $16,266.
Nationally, the average account balance is $20,671. (As of June 30, 2014; includes direct, advisor-sold, and prepaid type plans. Source: College Savings Plans Network 529 Report, September 2014.)
Average Balance by Age of Beneficiary
- The average balance of Direct Plan accounts by age of beneficiary steadily rises through age 17, with contributions being weighted more heavily in the early years of saving.
We hope this information helps you to gain some perspective on your own savings goals. Remember, each family has their own approach and goals for saving for college. Some families want to save to pay for all of their child’s college expenses, others are striving to save about half, while others are simply trying to save some in order to help as best they can. Whatever your goal, the most important thing is that you are saving for college.
If you want to boost your savings, consider setting up an Automatic Investment Plan for recurring contributions. You can also ask if your employer supports payroll deduction for CollegeAdvantage. And, remember, family and friends are often looking for meaningful ways to give gifts to the loved ones in their lives. Make sure they know that gift contributions are welcomed and easy to make for birthdays, holidays, and other special occasions. Read more about receiving gift contributions.
If you need an estimate of future college costs for your child, to help you set a savings goal, we recommend you use the calculators available on our Planning Tools page. Setting your goal is important because everything you save now helps reduce your child’s need for burdensome student loans in the future.
Posted on December 18, 2014