Excerpted from Saving for college.com’s Family Guide to College Savings
Establish a savings budget. One of the first steps you should take in planning for your child’s future college expenses is to establish a savings goal.
| Monthly Savings Goal* |
| Child's Age |
Average Public
(4 Yrs. = $50,000) |
Average Private
(4 Yrs. = $124,000) |
Average Ivy
(4 Yrs. = $166,000) |
| Newborn |
$312 |
$ 773 |
$1,036 |
| Four |
$352 |
$ 871 |
$1,167 |
| Eight |
$417 |
$1,034 |
$1,385 |
| Twelve |
$544 |
$1,347 |
$1,804 |
| Sixteen |
$874 |
$2,167 |
$2,902 |
|
* Assumes 6% annual college cost increase and 6% annual percentage yield. Current costs include approximate average tuition, fees, room, board, and books. This is only an estimate. Your costs and results will vary. Please seek professional advice.
