For my 2 year old daughter, the calculator estimated I need to save $811 per month ($9,743 per year) to pay for 100% of her college tuition. This is consistent with the previous two college savings calculations done above. Therefore, we will need to save $10,000 to $12,000 per year to confidently cover our daughter's college education .
To account for the possibility that she may attend a lower cost school, we are only putting a portion of the money (about 50%) in tax advantaged college savings accounts. The balance we keep in our personal savings account. Thus, this money can be used for other purposes should it not be needed for college expenses.
For more on Crossing Generations, check back every Thursday for a new segment.
Photo Credit: morgueFile.com, Heather M.
This is not financial advice. Please consult a professional advisor.
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