According to The College Board, in 2020-2021 the average total charges, including tuition and fees and room and board, at public four-year institutions, were $22,180 (in-state) and $38,540 (out-of-state), and $50,770 at private non-profit four-year institutions.
Saving enough for their children’s education is a major financial concern for many parents. With the current cost of a four-year college education reaching six figures in some instances, your child’s college education may cost more than you expect. This calculator is designed to help you estimate the cost of your child’s education, based on the variables you input.
Are you on target to meet your college savings goal? One of the factors that will determine if you reach your goal is whether the earnings on your college fund meet your expectations. This graph shows how much you’ll accumulate if your college fund’s earnings meet your expectations or fall below your expectations by 2 percent. You may be surprised by the effect of a mere 2 percent difference in your expected rate of return. Total accumulated if earnings fall below your expectations by 2 percent: $0.
Growth of College Savings
The information provided is not specific investment advice, a guarantee of performance, or a recommendation. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk. For simplicity the effects of taxes, fees, and expenses are not considered in this illustration and would reduce the results shown if they were.