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2495: How Much Should You Really Save For College by Jeff Rose of Good Financial Cents
Feb 22, 2025
How much should you save for your child's college? Discover the financial strategies to tackle this pressing question! Early savings can make a huge difference, as delaying even a few years impacts your monthly goals. Tools like the College Cost Calculator and 529 plans are highlighted as practical aids for parents. Don't wait for the perfect moment; starting today can ease future burdens and lead to a debt-free college experience for your child!
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Quick takeaways
- Starting to save for college early significantly lowers monthly savings goals and can substantially reduce future student debt.
- Utilizing financial tools and understanding inflation are essential for accurately estimating college savings and expenses for families.
Deep dives
The Importance of Early Savings for College
Starting to save for college as early as possible is crucial for meeting the increasing costs of higher education. For instance, if you begin saving when your child is born, you would need to save approximately $418.90 monthly to cover the projected total cost of $201,108 in 18 years at an 8% return. Delaying the start of savings can drastically increase the required monthly contributions; starting at age 10 would raise the monthly savings needed to nearly $922.27 for a total cost of $123,463, highlighting the financial burden of waiting longer to save.
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