Saving for College is a Learning Experience

When it was time for me to consider college, it became clear that my parents would help to finance my education. They were committed and unconditionally supportive - but they weren’t prepared. They didn’t plan ahead to save money in a way which matched the real cost of college. That, of course, would have been hard, since the cost of college was - and still is - skyrocketing, but it was more about not having the tools and an understanding about how to plan - how to save - that prevented them from planning to save the right amount of money.

Luckily for me, there were student loans, and reasonable state school tuition. But it still would have helped them to have the right tools to plan ahead. Let’s think about what data would help plan to save for college:

• Average cost of college today with tuition inflation expectations

• Time until high school graduation (number of years you have to save)

• Amount of saving so far

• Rate of return on savings and investments

There are probably other factors - but with these simple data points, and then some simple, and some complex calculations, a good plan for saving for college is very possible. Even with a tool to do this planning, it may end up that you can’t actually meet the saving requirement to afford college - but at least you’ll know where you stand, and know what you can afford.

Screen shot of the College Savings Calculator

The College Savings calculator helps people understand what they would need to save - annually, from this point forward, until the start of college - to afford that college. This spreadsheet gives you the ability to plan for two people at one time or two scenarios at one time, so you can compare those scenarios.

Don’t find yourself up against a deadline to pay for college - or apply to colleges you can afford - before planning for the expensive pursuit of a college degree. Get all the help you can in this planning by using tools like this College Savings Calculator!