For a public in-state university, starting at birth and targeting the full 4-year cost (projected with 5% tuition inflation) requires roughly $480–$700/month at a 7% return in a 529. Starting at age 5 requires ~$850/month; starting at age 10 jumps to ~$1,850/month. The earlier you start, the more compound growth does the work.

You can: (1) change the beneficiary to another family member tax-free, (2) roll up to $35,000 lifetime into a Roth IRA for the beneficiary under SECURE 2.0 Act (account must be 15+ years old), (3) use for K-12 tuition up to $10,000/yr, or (4) withdraw non-qualified amounts—earnings are taxed as income plus a 10% federal penalty.

A parent-owned 529 is assessed at a maximum 5.64% rate on the FAFSA—minimal impact. Under new 2024 FAFSA rules, grandparent-owned 529 distributions no longer count as student income, eliminating a previous drawback. Student-owned 529s are assessed at 20%, which is less favorable.

Yes—up to $10,000/year per beneficiary from a 529 can pay K-12 tuition at public, private, or religious schools (federal rule; some states may not conform). 529 funds can also be used at eligible trade schools and vocational programs listed on the federal student aid website.