Financial Answer Center
Developing a Funding Strategy

Monthly Investment Program

This table* shows how much more you have to invest each month, the later you begin a college investment program for your child.

Child's Age
Now

Public College
$20,000/Year

College
$30,000/Year

Private College
$40,000/Year

0 $390 $585 $780
1 $406 $609 $812
2 $423 $634 $846
3 $442 $663 $884
4 $462 $694 $924
5 $486 $728 $972
6 $511 $767 $1,022
7 $541 $811 $1,082
8 $574 $860 $1,148
9 $612 $917 $1,224
10 $656 $984 $1,312
11 $708 $1,062 $1,416
12 $770 $1,155 $1,540
13 $846 $1,269 $1,692
14 $941 $1,411 $1,882
15 $1,062 $1,593 $2,124
16 $1,224 $1,836 $2,448
17 $1,450 $2,175 $2,900
18 $1,789 $2,683 $3,578

* Assumes you start investing at the age of your child in the left-hand column and you invest each month through their senior year of a four-year college. College costs go up 5% per year and you invest your money, after taxes, at 7% per year.

To reasonably expect a 7% rate of return, you're going to have to take some risk and invest in stocks or growth investments.

Clearly, the longer you wait, the more you'll have to put away each month to cover the cost. Saving now makes it easier when the time comes to pay the bills.

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