Start saving now
For a couple years now I have planned to open up a savings vehicle for my (future) childrens college expenses upon their birth. After reading this article, I realized that I really do not have an option, but it is a necessity to start saving as soon as possible. The current expected expense for four years at a public school including tuition, room and board is $49,670 and $120,371 for a private school. These numbers seem huge, but are rather small in comparison to what the projected rates are in 2020. The beginning rates in 2020 are around $126,178 for public and $305,787 for private schools. Granted inflation will take place and our incomes will rise, but these growth rates far exceed the inflation rate. With this being the case, the article reitterates the importance of "jump-starting" your savings accounts and it shows the results of doing so. It is also important to start evaluating your family's financial situation at least two years before the child enters college. This is to determine how much you (the parents) can help the student financially. Overall, this article is a good reminder of being prepared and aware of changes in the future. Whether a student, manager, or consumer, we all need to stay on top of our finances in order to help promote a steady economy.