Page 56 - Book2E

Average College Cost
Tuition $5000/yr x 4 years = $20,000 Textbooks $450/yr x 4 years = $1,800
Room and Board $3000/yr x 4 years = $12,000 School Fees $250/yr x 4 years = $1,000
Total Cost = $34,800 Your Cost =
Cost of the College of Your Choice
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Let’s Review______________________________________
Saving for an Education versus Financial Aid
Although current interest rates on financial aid for financing an educa- tion are low by past standards, the cost to finance an education is still high. Let’s compare what you would actually lose by using financial aid to pay for an education rather than saving the money. Assume you begin saving for your child’s education when your child is three years old and your child begins college at 18 years old.
1 . Determine the cost for four years in college .
Here is an example.
On the blank line on the right, put the amount for the college you would choose. Most colleges and universities have estimates on their websites for cost of books, room and board, and fees.
2 . Calculate what you would have to save per month between three years of age and 18 years of age to have enough to pay for your child’s education.
18 years – 3 years
15 years x 12 months
Total cost $34,800 ÷ 180 months
= 15 years
= 180 months
= $193.33 per month
There's More to an Education