How Much Should You Be Saving for Your Kids College Fund?

College is Expensive. Are You Going to Be Ready to Pay Out when Your Child Reaches that Age?

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Sending your kids to college can be very difficult if you haven’t prepared yourself early on. You need to start early with a plan. Even if your kids end up not going to college for whatever reason at least they have that option. If they don’t have that money available they have a greater chance of not going to college.

There is Savings, 529 Plan, Scholarships and Financial Aid. However, a savings plan is the best bet because you are not sure if you will qualify for financial aid then and who knows if your child will get a scholarship. So rule those out for now until the time comes. If you do end up getting help from other sources then maybe you can use that extra money you saved towards your other children’s education or for a nice vacation!

First example: Below is the $35,000 savings plan(plus inflation). So lets say your child is 5 years old and you haven’t started saving money yet. To save money for a typical 4 year college, you would need to put away $329.48 a month till they reached 18 to meet that goal. That is also per child.

$35,000 Plan

AGE – YEARS TO SAVE – TOTAL TO SAVE – ONCE A MONTH

Baby………..18…………………$59,585.16…………..$275.86

1……………..17…………………$57,849.67…………..$283.58

2……………..16…………………$56,164.73…………..$292.52

3……………..15…………………$54,528.86…………..$302.94

4……………..14…………………$52,940.64…………..$315.12

5……………..13…………………$51,398.68…………..$329.48

6……………..12…………………$49,901.63…………..$346.54

7……………..11…………………$48,448.19…………..$367.03

8……………..10…………………$47,037.07…………..$391.98

9………………9………………….$45,667.06…………..$422.84

10…………….8………………….$44,336.95…………..$461.84

11…………….7………………….$43,045.59…………..$512.45

12…………….6………………….$41,791.83…………..$580.44

13…………… 5………………….$40,574.59…………..$676.24

14…………….4………………….$39,392.81…………..$820.68

15…………….3………………….$38,245.45………….$1,062.37

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Savings college funds to equal $35,000 (today’s dollars) by the time they are 18 years old Assume 3% inflation this is based off of a national average public 4 year college. Community college would be roughly half

Second Example: The $50.00 plan is for those who don’t have very much extra money to put into savings. Lets say your child is 12 years old. You start putting away $50.00 a month. By the time they reach college you would have $3,600 saved for them. Now that is not much but its something and wouldn’t it be better to at least have that little bit then to not have anything at all set aside?

$50.00 a Month Plan

AGE – YEARS TO SAVE – TOTAL SAVED

baby…………18………………….$10,800

1……………..17………………….$10,200

2……………..16……………………$9,600

3……………..15……………………$9,000

4……………..14……………………$8,400

5……………..13……………………$7,800

6……………..12……………………$7,200

7……………..11……………………$6,600

8……………..10……………………$6,000

9………………9…………………….$5,400

10…………….8…………………….$4,800

11…………….7…………………….$4,200

12…………….6…………………….$3,600

13…………….5…………………….$3,000

14…………….4…………………….$2,400

15…………….3…………………….$1,800

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It is your job as the parent to help guide your child in the right direction. By being responsible parents and saving for their future you are teaching them the values of life. In which they will hopefully do the same to their own children. I am not saying you have to pay for their whole education. Make them work for it too! Scholarships, part time jobs, financial aid, good grades, etc… Let them know that this is not a free ride to go party for 4 years. That you worked hard to help them go to college. In return that they work hard too.

About Leslie Pleasants

Leslie Pleasants is the founder of Today's Every Mom. Inspired by her own busy life with kiddos she set out to create a spot where Moms of any stage or age could find relevant and resourceful advice.