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what do i have to save to go to college?
how much money do i have to save to go to college
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7 answers
Updated
Nina’s Answer
Hi Ruby!
Nowadays, there are many opportunities for Financial Aid, when paying for college. I would not worry so much about saving and put more of your effort into your education.
There is FAFSA, which is especially helpful when paying for college, along with the PEL Grant.
I hope this helps!
-Nina
Nowadays, there are many opportunities for Financial Aid, when paying for college. I would not worry so much about saving and put more of your effort into your education.
There is FAFSA, which is especially helpful when paying for college, along with the PEL Grant.
I hope this helps!
-Nina
Updated
Melissa’s Answer
Hello Ruby,
All the suggestions you've received so far are excellent resources to help you find the answer you're looking for. I'd like to share an additional option that's often overlooked by folks at the beginning of their educational path. If your timetable permits, why not think about applying for jobs that offer a tuition reimbursement benefit? A lot of companies provide this perk to support their team members in achieving a college degree. Each employer has their own set of rules for this, so it's definitely something worth considering.
All the suggestions you've received so far are excellent resources to help you find the answer you're looking for. I'd like to share an additional option that's often overlooked by folks at the beginning of their educational path. If your timetable permits, why not think about applying for jobs that offer a tuition reimbursement benefit? A lot of companies provide this perk to support their team members in achieving a college degree. Each employer has their own set of rules for this, so it's definitely something worth considering.
Updated
Rory’s Answer
Kudos to you for considering college savings! The cost of college can fluctuate significantly based on factors such as the school type and its location. Let's simplify this:
Tuition Expenses:
For the 2021-22 academic year, the average tuition and fees were:
Public state college (in-state): Roughly $9,678 yearly for a four-year course.
Private for-profit college: About $17,825 yearly for a four-year course.
Private non-profit college: Roughly $38,768 yearly for a four-year course1.
Living Costs:
Besides tuition, you'll also need to budget for living expenses. On average, room and board costs are around $12,770 yearly for both in-state and out-of-state public colleges2.
Overall Cost:
To estimate the overall cost, you can use online college savings calculators. For instance, if you have a 1-year-old child and plan to send them to college in 2035, the projected costs are:
In-state public college: Roughly $11,260 yearly.
Out-of-state public college: About $29,150 yearly.
Private college: Roughly $41,540 yearly3.
Savings Tips:
Consider a 529 college savings plan, which offers tax benefits for education expenses. You can tweak your monthly contributions to see how your savings will grow over time.
The 1/3 Rule is a useful guide: Try to save about one-third of future college costs for each child. However, most families manage to save only about 10% of college costs by the time their child turns 181.
Keep in mind that these numbers can shift due to inflation, so it's crucial to start saving early and consider investment options like a 529 plan. For a personalized estimate, a college savings calculator can help you determine how much you need to save based on your unique situation.
Tuition Expenses:
For the 2021-22 academic year, the average tuition and fees were:
Public state college (in-state): Roughly $9,678 yearly for a four-year course.
Private for-profit college: About $17,825 yearly for a four-year course.
Private non-profit college: Roughly $38,768 yearly for a four-year course1.
Living Costs:
Besides tuition, you'll also need to budget for living expenses. On average, room and board costs are around $12,770 yearly for both in-state and out-of-state public colleges2.
Overall Cost:
To estimate the overall cost, you can use online college savings calculators. For instance, if you have a 1-year-old child and plan to send them to college in 2035, the projected costs are:
In-state public college: Roughly $11,260 yearly.
Out-of-state public college: About $29,150 yearly.
Private college: Roughly $41,540 yearly3.
Savings Tips:
Consider a 529 college savings plan, which offers tax benefits for education expenses. You can tweak your monthly contributions to see how your savings will grow over time.
The 1/3 Rule is a useful guide: Try to save about one-third of future college costs for each child. However, most families manage to save only about 10% of college costs by the time their child turns 181.
Keep in mind that these numbers can shift due to inflation, so it's crucial to start saving early and consider investment options like a 529 plan. For a personalized estimate, a college savings calculator can help you determine how much you need to save based on your unique situation.
Updated
Aisha’s Answer
Hi Ruby,
Saving for college can seem like an overwhelming task, but remember, it's a journey that varies greatly based on several factors. Let's break it down:
1. **Tuition and Fees**: This is usually the biggest outlay. The cost can swing widely, depending on whether you're choosing a public or private institution, your residency status, and the specific course you're eyeing.
2. **Room and Board**: If you're thinking of living on campus, you'll need to set aside funds for room and board. This can change based on whether you're sharing a room, living in a dorm, or renting an apartment.
3. **Books and Supplies**: Don't forget about textbooks and other course materials. These can accumulate over a semester or academic year.
4. **Transportation**: Depending on how far your home is from your college, you may need to budget for travel costs, be it gas, public transit, or even flights.
5. **Personal Expenses**: Everyday expenses like clothing, toiletries, and entertainment should also be part of your budget.
6. **Financial Aid and Scholarships**: Remember, there are financial aid, grants, scholarships, and work-study programs that can help lighten the burden of college costs. Make sure to research and apply for these opportunities.
To gauge how much you need to save, start by exploring the costs of colleges you're keen on attending and create a budget based on your expected expenses. Then, think about how much you can feasibly save each month or year leading up to college. Don't forget to account for inflation and potential tuition hikes over time.
Consider opening a savings account specifically for college expenses, like a 529 savings plan, which provides tax benefits for education savings. A chat with a financial advisor can also offer tailored advice based on your financial situation and objectives.
You've got this, Ruby!
Saving for college can seem like an overwhelming task, but remember, it's a journey that varies greatly based on several factors. Let's break it down:
1. **Tuition and Fees**: This is usually the biggest outlay. The cost can swing widely, depending on whether you're choosing a public or private institution, your residency status, and the specific course you're eyeing.
2. **Room and Board**: If you're thinking of living on campus, you'll need to set aside funds for room and board. This can change based on whether you're sharing a room, living in a dorm, or renting an apartment.
3. **Books and Supplies**: Don't forget about textbooks and other course materials. These can accumulate over a semester or academic year.
4. **Transportation**: Depending on how far your home is from your college, you may need to budget for travel costs, be it gas, public transit, or even flights.
5. **Personal Expenses**: Everyday expenses like clothing, toiletries, and entertainment should also be part of your budget.
6. **Financial Aid and Scholarships**: Remember, there are financial aid, grants, scholarships, and work-study programs that can help lighten the burden of college costs. Make sure to research and apply for these opportunities.
To gauge how much you need to save, start by exploring the costs of colleges you're keen on attending and create a budget based on your expected expenses. Then, think about how much you can feasibly save each month or year leading up to college. Don't forget to account for inflation and potential tuition hikes over time.
Consider opening a savings account specifically for college expenses, like a 529 savings plan, which provides tax benefits for education savings. A chat with a financial advisor can also offer tailored advice based on your financial situation and objectives.
You've got this, Ruby!
Updated
Joseph’s Answer
Like most things, it depends. Private institutions have higher tuition and fees than public universities. Some majors will cost more than others. If the college isn't in your home town or you otherwise don't have the option of living with family, then you'll have to factor in living expenses.
So step one is figure out the average tuition and fees cost for your college of choice for one year and tack on living expenses and the cost of transportation, multiply that by four, then tack on 20% for inflation and unexpected expenses and that's what you can expect to pay for four years. Most colleges will have done this math for you and you should be able to find the average cost of one year of college on their website. Generally speaking, colleges tend to make very rosy predictions so you should add 20%-30% to whatever number they quote. For example, the US Dept of Education states that for the 2021-2022 academic year Tuition and Fees and Chicago State was $12,018 and books and on campus housing cost $20,700 for a total of $32,718. When you factor in other expenses like transportation, field trips, medical expenses, etc. you are probably looking at $38,000 - $41,000 a year. Figure you'll end up spending $160,000 -$200,000 over the course of four years IF you live on campus and pay 100% out of pocket and are modestly frugal.
Next you need to figure out what sort of scholarships and financial aid you are eligible for. If you are star athlete or genius musician or gifted mathematician you may have all that paid for by someone else. Most of us aren't quite so lucky and will only get partial assistance with tuition and be on the hook for 100% of living fees. Everyone's situation is different so you'll want to spend a several days using multiple different financial aid estimators to figure out what sort of assistance you can expect to receive. Again, many school operated sites and consulting services tend to make overly rosy predictions about what sort of assistance you will be eligible for so try and use many different estimators and use the lowest number for your budgeting. Also keep in mind that schools and the government have a lot less grant money to give out than what students are eligible for, and all the only aid left by the time they get to you are student loans, which you should do your best to avoid like the plague. So even if you are eligible to have 100% of your tuition and fees covered, that coverage may come in the form of a loan which in the long run is just the same as not getting any aid at all (maybe even worse).
So if you are planning to pay for 100% of four years of college out of pocket, the answer is you have to save up a lot. Financial aid generally only covers some tuition and fees, but remember that if you aren't going to be living with relatives who can cover most or all of your living expenses, you'll need to plan on spending a lot of money on a place to live and keeping yourself fed. Most colleges will have calculated the total cost of one year and will have that info on their website, but you should add 20%-30% because those numbers assume you will live like a hermit and eat ramen and cup a soup for all your meals. Financial aid may cover some of your costs, but you may only be eligible for student loans, which will cost you more in the long run than paying up front out of pocket.
After you have put together all the numbers, come up with a savings goal. If you plan to live at home and take the bus to and from a public university campus, you will need to save a lot less than if you plan to go to a private school out of state in a town that requires you own a car. Keep in mind that for 99% of the careers out there, nobody care where you got your degree or what your GPA was once you get past your first interview. Two years at a community college followed by two years at a mediocre state college will more than likely land you the exact same job and pay than four years at an Ivy League school. Yeah, ok, if your dream is to land a gig and some private think tank or be an assistant to a Governor of the Federal reserve then an Ivy League Education is pretty much a requirement, but if you just want to make a healthy six figure salary in the private sector, an inexpensive degree from Mediocre State will be just as good as a sheepskin from Uppity U.
Figure out what colleges you want to go to and get the total cost for 1 year from their websites
Add 20%-30% to any numbers they provide
Subtract your estimated financial aid from those numbers
Come up with a saving plan based on the colleges of your choice
So step one is figure out the average tuition and fees cost for your college of choice for one year and tack on living expenses and the cost of transportation, multiply that by four, then tack on 20% for inflation and unexpected expenses and that's what you can expect to pay for four years. Most colleges will have done this math for you and you should be able to find the average cost of one year of college on their website. Generally speaking, colleges tend to make very rosy predictions so you should add 20%-30% to whatever number they quote. For example, the US Dept of Education states that for the 2021-2022 academic year Tuition and Fees and Chicago State was $12,018 and books and on campus housing cost $20,700 for a total of $32,718. When you factor in other expenses like transportation, field trips, medical expenses, etc. you are probably looking at $38,000 - $41,000 a year. Figure you'll end up spending $160,000 -$200,000 over the course of four years IF you live on campus and pay 100% out of pocket and are modestly frugal.
Next you need to figure out what sort of scholarships and financial aid you are eligible for. If you are star athlete or genius musician or gifted mathematician you may have all that paid for by someone else. Most of us aren't quite so lucky and will only get partial assistance with tuition and be on the hook for 100% of living fees. Everyone's situation is different so you'll want to spend a several days using multiple different financial aid estimators to figure out what sort of assistance you can expect to receive. Again, many school operated sites and consulting services tend to make overly rosy predictions about what sort of assistance you will be eligible for so try and use many different estimators and use the lowest number for your budgeting. Also keep in mind that schools and the government have a lot less grant money to give out than what students are eligible for, and all the only aid left by the time they get to you are student loans, which you should do your best to avoid like the plague. So even if you are eligible to have 100% of your tuition and fees covered, that coverage may come in the form of a loan which in the long run is just the same as not getting any aid at all (maybe even worse).
So if you are planning to pay for 100% of four years of college out of pocket, the answer is you have to save up a lot. Financial aid generally only covers some tuition and fees, but remember that if you aren't going to be living with relatives who can cover most or all of your living expenses, you'll need to plan on spending a lot of money on a place to live and keeping yourself fed. Most colleges will have calculated the total cost of one year and will have that info on their website, but you should add 20%-30% because those numbers assume you will live like a hermit and eat ramen and cup a soup for all your meals. Financial aid may cover some of your costs, but you may only be eligible for student loans, which will cost you more in the long run than paying up front out of pocket.
After you have put together all the numbers, come up with a savings goal. If you plan to live at home and take the bus to and from a public university campus, you will need to save a lot less than if you plan to go to a private school out of state in a town that requires you own a car. Keep in mind that for 99% of the careers out there, nobody care where you got your degree or what your GPA was once you get past your first interview. Two years at a community college followed by two years at a mediocre state college will more than likely land you the exact same job and pay than four years at an Ivy League school. Yeah, ok, if your dream is to land a gig and some private think tank or be an assistant to a Governor of the Federal reserve then an Ivy League Education is pretty much a requirement, but if you just want to make a healthy six figure salary in the private sector, an inexpensive degree from Mediocre State will be just as good as a sheepskin from Uppity U.
Joseph recommends the following next steps:
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
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Answers
Updated
James Constantine’s Answer
Hello Ruby,
Saving for College:
Saving for college can be a significant financial undertaking, but with proper planning and budgeting, it is achievable. The amount of money you need to save for college depends on various factors such as the type of college you plan to attend, the duration of your program, and your living expenses. Here are some steps to consider when saving for college:
Determine the Cost of Attendance: Research the colleges you are interested in attending and calculate the total cost of attendance, including tuition, fees, room and board, books, supplies, and other expenses.
Create a Savings Plan: Once you have an estimate of the total cost of attendance, create a savings plan that outlines how much money you need to save each month or year to reach your goal.
Explore Financial Aid Options: Look into scholarships, grants, work-study programs, and student loans to help cover the cost of college. Filling out the Free Application for Federal Student Aid (FAFSA) can help determine your eligibility for financial aid.
Consider Opening a 529 College Savings Plan: A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Contributions to a 529 plan grow tax-free and withdrawals are tax-free when used for qualified education expenses.
Cut Expenses and Increase Income: To save more money for college, consider cutting unnecessary expenses, finding ways to increase your income through part-time work or internships, and setting aside any monetary gifts or windfalls towards your college fund.
Monitor Your Progress: Regularly review your savings plan and adjust it as needed based on changes in your financial situation or college costs.
How Much Money Do I Have to Save to Go to College:
The amount of money you need to save for college varies depending on the factors mentioned above. According to the College Board’s Trends in College Pricing report for the 2020-2021 academic year:
The average published tuition and fees at public four-year institutions were $10,560 for in-state students and $27,020 for out-of-state students.
The average published tuition and fees at private nonprofit four-year institutions were $37,650.
Room and board costs averaged $11,620 at public institutions and $13,120 at private institutions.
These figures provide a general idea of the costs associated with attending college but may vary based on individual circumstances.
Career in Medicine:
A career in medicine is a rewarding but demanding path that requires significant dedication both academically and financially. Becoming a doctor typically involves completing a bachelor’s degree, medical school, residency training, and obtaining licensure. Medical school tuition can be expensive; however, there are various financial aid options available such as scholarships, grants, loans, and loan repayment programs for those pursuing careers in medicine.
College Advice:
When preparing for college financially:
Start saving early
Research scholarship opportunities
Consider community colleges or state universities as more affordable options
Explore work-study programs
Seek advice from financial aid offices
Computer:
If you are considering studying computer science or related fields in college:
Research different computer science programs
Look into potential job prospects post-graduation
Consider internships or co-op programs during your studies
Explore scholarships specific to computer science majors
Top 3 Authoritative Sources Used:
College Board: The College Board is a reputable source that provides data on trends in college pricing and financial aid. Their reports offer valuable insights into the costs associated with attending college.
U.S. Department of Education: The U.S. Department of Education offers information on federal student aid programs such as FAFSA as well as resources on planning and paying for college.
529 Plans: Information from state-sponsored 529 plans provides details on tax-advantaged savings options specifically designed for educational expenses like college tuition.
These sources were instrumental in providing accurate information on saving for college expenses across various scenarios and career paths.
God Bless You,
JC.
Saving for College:
Saving for college can be a significant financial undertaking, but with proper planning and budgeting, it is achievable. The amount of money you need to save for college depends on various factors such as the type of college you plan to attend, the duration of your program, and your living expenses. Here are some steps to consider when saving for college:
Determine the Cost of Attendance: Research the colleges you are interested in attending and calculate the total cost of attendance, including tuition, fees, room and board, books, supplies, and other expenses.
Create a Savings Plan: Once you have an estimate of the total cost of attendance, create a savings plan that outlines how much money you need to save each month or year to reach your goal.
Explore Financial Aid Options: Look into scholarships, grants, work-study programs, and student loans to help cover the cost of college. Filling out the Free Application for Federal Student Aid (FAFSA) can help determine your eligibility for financial aid.
Consider Opening a 529 College Savings Plan: A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. Contributions to a 529 plan grow tax-free and withdrawals are tax-free when used for qualified education expenses.
Cut Expenses and Increase Income: To save more money for college, consider cutting unnecessary expenses, finding ways to increase your income through part-time work or internships, and setting aside any monetary gifts or windfalls towards your college fund.
Monitor Your Progress: Regularly review your savings plan and adjust it as needed based on changes in your financial situation or college costs.
How Much Money Do I Have to Save to Go to College:
The amount of money you need to save for college varies depending on the factors mentioned above. According to the College Board’s Trends in College Pricing report for the 2020-2021 academic year:
The average published tuition and fees at public four-year institutions were $10,560 for in-state students and $27,020 for out-of-state students.
The average published tuition and fees at private nonprofit four-year institutions were $37,650.
Room and board costs averaged $11,620 at public institutions and $13,120 at private institutions.
These figures provide a general idea of the costs associated with attending college but may vary based on individual circumstances.
Career in Medicine:
A career in medicine is a rewarding but demanding path that requires significant dedication both academically and financially. Becoming a doctor typically involves completing a bachelor’s degree, medical school, residency training, and obtaining licensure. Medical school tuition can be expensive; however, there are various financial aid options available such as scholarships, grants, loans, and loan repayment programs for those pursuing careers in medicine.
College Advice:
When preparing for college financially:
Start saving early
Research scholarship opportunities
Consider community colleges or state universities as more affordable options
Explore work-study programs
Seek advice from financial aid offices
Computer:
If you are considering studying computer science or related fields in college:
Research different computer science programs
Look into potential job prospects post-graduation
Consider internships or co-op programs during your studies
Explore scholarships specific to computer science majors
Top 3 Authoritative Sources Used:
College Board: The College Board is a reputable source that provides data on trends in college pricing and financial aid. Their reports offer valuable insights into the costs associated with attending college.
U.S. Department of Education: The U.S. Department of Education offers information on federal student aid programs such as FAFSA as well as resources on planning and paying for college.
529 Plans: Information from state-sponsored 529 plans provides details on tax-advantaged savings options specifically designed for educational expenses like college tuition.
These sources were instrumental in providing accurate information on saving for college expenses across various scenarios and career paths.
God Bless You,
JC.
Updated
Fred’s Answer
"It depends".
Private schools tend to cost more that public/state schools. You may be able to get scholarships and grants, all of which help reduce costs. You can also look at government or private loans, which let you pay for college over 20(or so) years after you graduate.
Your best bet is to talk to your high school college counsellor, who can give you the best, most up to date advice.
Private schools tend to cost more that public/state schools. You may be able to get scholarships and grants, all of which help reduce costs. You can also look at government or private loans, which let you pay for college over 20(or so) years after you graduate.
Your best bet is to talk to your high school college counsellor, who can give you the best, most up to date advice.