Aww, your precious bundle of joy has arrived and your heart bursts with love. It might not be the only thing with a bursting sensation – your wallet may, too. If only that tree you and daddy sat in k-i-s-s-i-n-g was the exception to the growing money rule. Yes, the number of diapers baby Harper goes through is normal. No, it’s not likely that you will get her potty trained within six months. While new baby expenses are definitely a shock to the wallet, the big expense that may be keeping you up at night is college – and for good reason. Here’s why:
The annual cost of a 4-year public college in 2014-2015 is $23,410 and for a private institution, $46,242 (in-state tuition assumed). That’s tough even today if you have an 18 year old, but if your child is a newborn and costs go up by 4% a year, the total cost could be $200k for public school and $400k for private! So how much should you be saving? If you plan to fully fund college:
Even on a monthly basis, these numbers can be scary, particularly when you have other goals (i.e., not working forever). Consider saving to a 529 Plan to help make this goal more attainable and keep in mind that many families do not expect to cover 100% of college costs. Grants, scholarships, and loans can help ease this burden.
Determine how much you would like to cover (or can afford) and use savingforcollege.com’s calculator to develop your ideal savings target. And, please, let us know if you find that money tree!
Not a Subscriber? SUBSCRIBE HERE for our weekly email.
A Closer Look: Connecting with Millennials
Was Gridlock the Best Possible Outcome for Midterm Elections?
People Dislike Really Smart Leaders: It’s Quite True!
9 Quick Tips On Including Videos In Your Email Marketing
How to Work With a Narcissist
Roll Over 401(K) to IRA, but Keep Your Job
The Waterfall Effect or the Delicate Art of Alignment
Muni Technicals Weaken, but Relative Performance Holds Steady
What Customer Reaction to GDPR Is Telling Us About Our Data Culture
How to Get Rid of Your Toxic Work Culture
Investing in Life24 hours ago
Storyselling: Six Magic Words Guaranteed to Engage Your Clients
Development24 hours ago
How to Offer More to Your Ideal Clients
Solutions24 hours ago
Top 4 Themes in Impact Investing Right Now
Investments2 days ago
Global Equity Views 4Q 2018
Development2 days ago
How To Deliver Value During Prospect Engagement
Financial Podcasts2 days ago
How to Merge a CPA Firm With a Wealth Management Firm
Learn3 days ago
Millennials and Responsible Investing: Bridging the Generation Gap
Social Selling3 days ago
Is Spending Piles of Money on Marketing Just a Waste?