It's never too early to start planning and it's never too late to evaluate your resources. There is a lot of information available on the Internet, through bookstores, and from financial professionals on the topic of saving for your child's future. Keep in mind that every family's situation is different and strategies should be tailored to an individual's situation.
What will it Cost?
Most projections illustrate tuition expenses increasing at an average of 5-7 percent a year. The following chart projects what it could cost per year to send a child through college, including room and board.
| School Year |
Public 4-Year |
Private 4-Year |
| 2003-2004 |
$10,636 |
$26,854 |
| 2004-2005 |
$11,274 |
$28,465 |
| 2005-2006 |
$11,951 |
$30,173 |
| 2006-2007 |
$12,668 |
$31,984 |
| 2007-2008 |
$13,428 |
$33,903 |
| 2008-2009 |
$14,233 |
$35,937 |
| 2009-2010 |
$15,087 |
$38,093 |
| 2010-2011 |
$15,993 |
$40,378 |
| 2011-2012 |
$16,952 |
$42,801 |
| 2012-2013 |
$17,969 |
$45,369 |
Costs assume a 6% annual increase and use a base of: The College Board 2003 / 2004 survey for current school year costs including tuition, fees, room & board. Source: Annual Survey of Colleges, The College Board, New York, NY.
Savings Strategies
- Focus on the goal - Use our calculators to assist you in determining how much you need to save. If you can't afford to save the entire amount right now, save the most you can.
- Stay disciplined - Make a plan to save on a routine basis and make saving a priority. This will keep you on track to meet your goal. Consider an investment strategy like Dollar Cost Averaging.
- Specialized account options for education - There are special types of accounts available to help you save for your child's education.
Talk to an agent or advisor about options you have for funding your child's education.
