This table* shows how much more you have to invest each month, the later you begin a college investment program for your child.
Child's Age |
Public College |
College |
Private College |
0 | $390 | $585 | $780 |
1 | $406 | $609 | $812 |
2 | $423 | $634 | $846 |
3 | $442 | $663 | $884 |
4 | $462 | $694 | $924 |
5 | $486 | $728 | $972 |
6 | $511 | $767 | $1,022 |
7 | $541 | $811 | $1,082 |
8 | $574 | $860 | $1,148 |
9 | $612 | $917 | $1,224 |
10 | $656 | $984 | $1,312 |
11 | $708 | $1,062 | $1,416 |
12 | $770 | $1,155 | $1,540 |
13 | $846 | $1,269 | $1,692 |
14 | $941 | $1,411 | $1,882 |
15 | $1,062 | $1,593 | $2,124 |
16 | $1,224 | $1,836 | $2,448 |
17 | $1,450 | $2,175 | $2,900 |
18 | $1,789 | $2,683 | $3,578 |
* Assumes you start investing at the age of your child in the left-hand column and you invest each month through their senior year of a four-year college. College costs go up 5% per year and you invest your money, after taxes, at 7% per year.
To reasonably expect a 7% rate of return, you're going to have to take some risk and invest in stocks or growth investments.
Clearly, the longer you wait, the more you'll have to put away each month to cover the cost. Saving now makes it easier when the time comes to pay the bills.
Investment products and services are offered through INFINEX INVESTMENTS, Inc. Member FINRA/SIPC. The Investment Center at South Shore Bank is a trade name of the Bank. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.