Most parents agree that a major goal in their life is to see their child attend and graduate from a good college in order to go on to be successful and happy with a great job. However, with how the economy is these days, college tuition for your kids is an extremely scary thought. And I know what some of you are thinking, my kid is only 2 or 3 so why in the world would I start worrying myself sick about their college which is so many years away? Because starting to save now is the key!
How Much Should You Really Save?
From the day your child is born you will have approximately 18 years to save enough money to pay for their college tuition and other costs associated with them attending such as room and board, books, and such. Historically college costs have inflated at a rate of 5-8% annually, and the average return on investment will be about 7% annually according to historical returns on the S&P 500. While this may sound a bit overwhelming, the best advice is start saving early in order to be successful.
Continue reading for advice and information on how much your child’s college is going to cost you. If you aren’t sitting already, you might want to find a chair!