Use this calculator to determine the amount you need to invest each year to ensure
that you will have enough to cover your child's college costs. You also may want
to read FINRA's publication providing information and guidance about college savings plan options, including 529 plans.
Instructions:
- Annual College Costs?
In today's dollars, what is the annual cost for the college of your choice? Remember
to factor tuition, room and board, and books into your calculation. If you are unsure,
a typical public university costs about $8000.00 per year and a typical private
university can run $20000.00 per year, today.
- Current Savings?
How much do you currently have set aside for your child's college education?
- Years Until Enrollment?
How many years before your child will be entering college? Subtract your child's
current age from 18.
- Number Of Years Enrolled?
How many years will your child take to complete college? Remember some courses of
study may take more than the typical 4 years.
- Annual Yield?
What is your expected rate of return. For stocks or mutual funds you should consult
a prospectus. Please be aware that past performance is no guarantee of future performance.
- Inflation Rate?
What is the average expected annual inflation rate over the investment period?
- Inflate Contributions?
Would you like to increase your investment amounts to account for inflation over
the length of the investment period? Selecting "Yes" will increment the investment
each year by the exact amount of inflation. Selecting "No" will make each investment
an equal amount.
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