We estimate the cost of the kind of school you have in mind, decide what share you want to cover, and turn that into a monthly savings amount.
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529 plans grow tax-free when used for qualified education expenses. Tennessee's plan is TNStars. Because Tennessee has no state income tax, there is no state deduction for contributions, so you can choose any state's plan on cost and investment options.
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Who owns the account affects financial aid calculations and control of the money. Parent-owned 529s are generally treated more favourably than accounts in the student's name.
Grandparents can fund a 529 directly or contribute to a parent's account, and can use five-year gift tax averaging for larger gifts.
Unused money can be moved to another family member, used for other qualified education, or, under SECURE 2.0 and subject to conditions, partly rolled to a Roth IRA for the beneficiary.
