It’s no secret college tuition costs have ballooned over the last decade.
But the good news is that planning and saving or these types of significant expenses is a core element of personal finance. And that’s what we’re all about.
So whether you’re pursuing your own degree or would like to plan for your children’s future, we’ve put together everything you need to know to get started.
How much does college cost?
Whenever you’re building a long term savings plan it’s helpful to have a target figure in mind.
A year at most public universities – including tuition, books and room and board – is around $30k for in state students and $70k for out of state.
If you’re not sure which is your preferred choice, we recommend shooting for $70k and knowing in state is always an option if things don’t go according to plan.
How to start saving for college
Whether you already have a plan or just need to get started, the important thing to remember is always thinking ahead. How much money can you afford to set aside every year and how are you putting that money to work?
With answers to those two questions, you’ll have the foundation for your college savings plan. If you feel like you’re still missing something, you might need a better strategy on how to best put your money to work.
For those problems we rely on AI insights from Magnifi; to get help on your own plan, sign up and ask “help me with my college savings plan”.
Making sure you have enough to pay for college
Ideally, with the right plan you’ll be right on track when it’s time to make the first tuition payment.
However, with such a lofty goal, it’s important to understand your backups. Here is a list of a few options you can take advantage of to lower the out of pocket cost of college.
- Financial aid is offered by both the government and universities.
- Scholarships can be awarded based on academics, athletics, and financial need.
- Student loans are low interest and don’t affect your credit score.