Saving for College

One of the greatest concerns that comes to mind for many people when thinking of college is, How do I plan to pay for it?

As you’;ll discover in the infographic below, the best time to start saving for a college education is right now. The sooner you can begin putting money aside, the better off you will be when that time arrives.

To show the importance of starting a college fund as soon as possible, we used the CNN Money college savings calculator and ran three different types of scenarios to demonstrate the urgency. It’s important to give those savings accounts enough time to grow with interest to ensure there’s enough money to pay for all college expenses.

College Savings Infographic

“Saving for College” Infographic Data

Scenario 1: Upon the birth of your child, you must save $2,121 annually into a 529 plan, along with other plans once you’ve reached the maximum contribution, in order for your child at 18-years old to successfully complete and pay off college four years later.

Scenario 2: Waiting to begin saving when your child reaches age six, you’ll find yourself putting away $3,059 each year into a 529 plan, along with other plans once you’ve reached the maximum contribution, in order for your child at 18-years old to successfully complete and pay off college four years later.

Scenario 3: And if you procrastinate to your child’s 12th birthday, it’ll cost you $5,101 annually into a 529 plan, along with other plans once you’ve reached the maximum contribution, in order for your child at 18-years old to successfully complete and pay off college four years later.

Source: http://cgi.money.cnn.com/tools/collegeplanner/collegeplanner.jsp

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