College Costs: The Cost of Raising a Graduate

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7 hours ago

August 31, 2026

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Julia Wendling

Graphics & Design

Athul Alexander

Infographic showing the cost of raising a child and sending them to college in the U.S., created in partnership with NYLI.

College Costs: The Cost of Raising a Graduate

Earning a college degree is a long-term financial commitment. Understanding college costs can help families prepare for the expenses of raising a child, funding an education, and supporting the journey to graduation.

Created in partnership with New York Life Investment Management, this visual provides context on the college costs families may face and the role that early financial planning can play.

The Cost of Raising a Child by State

The financial journey begins long before college. Families must first navigate years of housing, childcare, food, transportation, healthcare, and other everyday expenses.

Where a family lives can make a dramatic difference. The annual cost of raising a child ranges from roughly $19,000 to $44,000 across the United States. Housing and childcare drive much of this variation.

Rank	State	Annual Cost ($ thousands)
1	Massachusetts	$44.2
2	Connecticut	$41.8
3	Vermont	$38.3
4	California	$35.7
5	New Jersey	$35.1
6	Washington	$35.0
7	Colorado	$35.0
8	Hawaii	$33.4
9	New York	$33.3
10	Minnesota	$33.2
11	Oregon	$33.1
12	Alaska	$32.9
13	New Hampshire	$32.7
14	Rhode Island	$32.6
15	Pennsylvania	$31.7
16	Maryland	$31.3
17	Montana	$29.0
18	Maine	$28.9
19	Virginia	$28.3
20	Wisconsin	$28.0
21	Indiana	$27.9
22	Ohio	$27.7
23	Illinois	$27.2
24	Nevada	$27.1
25	Utah	$27.0
26	Arizona	$26.6
27	Missouri	$26.0
28	Nebraska	$25.7
29	New Mexico	$25.2
30	Oklahoma	$25.2
31	North Dakota	$24.8
32	Delaware	$24.5
33	Idaho	$24.4
34	Florida	$24.0
35	North Carolina	$23.6
36	Michigan	$23.6
37	South Carolina	$23.3
38	Wyoming	$22.8
39	Texas	$22.7
40	West Virginia	$22.4
41	Iowa	$22.2
42	Arkansas	$21.8
43	Louisiana	$21.8
44	Kansas	$21.8
45	Tennessee	$21.4
46	Georgia	$21.3
47	South Dakota	$21.2
48	Kentucky	$20.8
49	Alabama	$20.6
50	Mississippi	$19.2

Families may face different costs depending on where they live. However, nearly everyone has one challenge in common: rising college costs relative to wages.

College Costs Are Getting Harder to Cover

College tuition and fees have risen much faster than wages over the past four decades. As a result, families must devote more of their earnings to cover one year of school.

In 1986, one year of tuition and fees at a public four-year college was equivalent to about 11 weeks of median wages. Today, it represents nearly 30 weeks of pay.

Year	Week’s Worth of Wages to Pay For
Year	Public Two-Year	Public Four-Year	Private Nonprofit Four-Year
1986	5.7	11.3	49.6
1987	6.2	12.2	51.1
1988	6.7	12.7	56.4
1989	6.9	13.2	57.2
1990	7.4	14.0	60.7
1991	8.5	15.6	62.5
1992	8.0	16.5	65.4
1993	8.4	17.0	65.9
1994	8.8	17.9	68.9
1995	9.4	18.4	70.9
1996	9.7	18.9	73.2
1997	9.8	19.4	75.4
1998	9.5	19.4	75.5
1999	9.4	19.2	75.8
2000	9.5	18.9	77.1
2001	9.4	19.5	80.4
2002	9.9	20.9	82.9
2003	10.7	23.0	84.6
2004	11.3	24.5	87.2
2005	11.7	25.6	90.3
2006	11.8	26.1	92.9
2007	11.4	27.3	92.0
2008	11.4	28.0	94.4
2009	11.8	29.2	96.4
2010	12.5	31.0	100.0
2011	13.2	32.8	102.3
2012	13.8	33.6	103.7
2013	14.1	34.0	105.9
2014	14.3	34.5	107.8
2015	14.4	34.7	109.1
2016	14.3	34.7	111.0
2017	14.2	34.6	112.4
2018	14.2	34.4	111.8
2019	14.0	34.2	111.6
2020	13.3	32.3	106.1
2021	13.3	32.4	106.6
2022	12.8	31.0	103.7
2023	12.5	30.1	104.7
2024	12.2	29.6	104.2
2025	12.1	29.3	103.7

This growing gap makes it harder to cover college costs using current income alone. It also strengthens the case for starting to save before the first tuition bill arrives.

The Full Cost of College

Tuition tells only part of the story. Total college costs also include housing, food, transportation, books, supplies, and other personal expenses.

For the 2025–26 academic year, the average student budget ranges from $30,990 for an in-state student at a public four-year college to $65,470 at a private nonprofit college. Housing and food alone average nearly $14,000 at public colleges and almost $16,000 at private nonprofit schools.

Sector	Tuition and Fees	Housing and Food	Books and Supplies	Transportation	Other Expenses	Total Budget
Private Nonprofit Four-Year On-Campus	$45,000	$15,920	$1,340	$1,190	$2,020	$65,470
Public Four-Year Out-of-State On-Campus	$31,880	$13,900	$1,330	$1,380	$2,430	$50,920
Public Four-Year In-State On-Campus	$11,950	$13,900	$1,330	$1,380	$2,430	$30,990

At some prestigious colleges—including the University of Chicago, Harvey Mudd College, and Barnard College—tuition and fees alone exceed $75,000 per year.

How Families Save for College Costs

Many families combine several funding sources to prepare for a future education. These include 529 plans, savings accounts, investments, and retirement funds.

Among families using each source, 529 plans hold an average of $9,900. Parents have also saved an average of $5,800 through other savings and investments and $5,400 through retirement accounts. Students contribute too, with an average of $2,900 in savings and another $2,300 in other savings or investments.

Average College Savings by Source	$ thousands
College Savings Plan (529)	9.9
Parent Savings or Investments (non-529)	5.8
Parent Retirement Savings	5.4
Student Savings	2.9
Other Student Savings or Investments	2.3

Starting early gives families more time to contribute and benefit from potential investment growth.

Planning for Future College Costs

Every family’s path is different. Some begin saving shortly after a child is born. Others start when college is only a few years away.

No matter the timeline, a clear strategy can help families balance college costs with their broader financial goals. A financial advisor can help assess the options, set priorities, and build a plan for what comes next.