Whether your planning on sending your child, or yourself, to college online or on campus, there is always one big question on your mind: How am I going to pay for all this?

As you’ll see in our newest infographic, you want to start saving for a college education as soon as possible.

No, seriously. Like, the moment your child leaves the hospital.

Putting money away into accounts and giving those accounts enough time to grow with interest is crucial in saving up for college. To demonstrate this, we ran three different scenarios through the CNN Money college savings calculator. As you can see in the infographic, if you wait past your child’s sixth birthday to start saving for their college education, it becomes nearly impossible to save enough to pay for all their college expenses out of pocket:

[Note: This is where financial aid comes in handy for a lot of people.]

online college

Infographic Data
Scenario #1: If you start saving at your child’s birth, you must put away $2,121 per year into a 529 plan, and then other plans once that’s maxed out, in order to have enough for your child to begin college at 18 and finish in four years.

Scenario #2: If you start saving at your child’s sixth birthday, you must put away $3,059 per year into a 529 plan, and then other plans once that’s maxed out, in order to have enough for your child to begin college at 18 and finish in four years.

Scenario #3: If you start saving at your child’s 12th birthday, you must put away $5,101 per year into a 529 plan, and then other plans once that’s maxed out, in order to have enough for your child to begin college at 18 and finish in four years.


Source: http://cgi.money.cnn.com/tools/collegeplanner/collegeplanner.jsp

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