|
The costs
of sending a child or a grandchild to college are high and
getting higher. Actual costs vary by school, but a general
place to begin is to consider that today's tuition, room,
board, books, transportation, and incidentals will probably
run:
- Private
4-year University - $30,000
- Public
4-year University for instate students - $14,000
- Public
4-year University for out-of-state students - $22,000
The rate
of college costs increases has been higher than inflation,
5% to 8% for the past several years. If we assume just a 5%
annual cost increase, the cost of a child's first year of
college will be:
|
Current
age
|
Years
to college
|
First
year costs at a private university
|
First
year costs at a public university for an instate student
|
First
year costs at a public university for an out-of-state
student
|
|
16
|
2
|
$33,075
|
$15,435
|
$24,255
|
|
12
|
6
|
$40,203
|
$18,761
|
$29,482
|
|
8
|
10
|
$48,867
|
$22,805
|
$35,836
|
|
4
|
14
|
$59,398
|
$27,719
|
$43,558
|
|
Just
born
|
18
|
$72,199
|
$33,693
|
$52,946
|
Save
early and often
Even considering that the child may qualify for a scholarship
or that you may have already started saving, the costs shown
above can be frightening. They only represent the first year.
When you consider that most students will attend college for
four years and maybe graduate school beyond that, the need
to save more is obvious.
Here is
a calculator so you can determine how much you should save
monthly to completely fund four years' of college for children
of different ages. This assumes you save the entire amount
before the student enters college.
Start
Your Automatic Savings Today
There
is no easier way to save than with an automatic savings plan.
If you are already using direct deposit for your paycheck,
have First National Bank and Trust transfer the amount each
month. Here is an
Automatic
Transfer Authorization form to help you enroll. If
you are not already using direct deposit for your paycheck,
here is a
Payroll Direct Deposit form to help you get started. You
can also call a service representative at 800-667-4401 or
email for more information. |