Saving for College: How much will it cost?

April 24, 2015

Don Chiodo

Don Chiodo

Education funding is a hot topic. It’s important to have a solid saving strategy to pay for college. But are you saving enough? You can start by getting a better view of the bills you might expect as you support your student through higher education.

The estimated average yearly cost of tuition and room and board for 2014 is expected to be:
4-year public school: $19,598 a year
4-year private school: $42,170 a year

Start early
It’s important to start saving for college as early as possible. Your Financial Advisor can be an important resource by running an education cost analysis for you and helping you look for strategies for college investment plans, including the 529 savings plan.
Start by looking at how much you might want to save each month, then begin putting money away early.

Where will your money go?
Costs will vary, depending on where your child attends school and where he or she will live while attending school.

The big bills
Visit the websites of prospective schools early to get an idea of costs and options. Your alma mater is a great place to start. Don’t forget to review fees for things like health care and transcripts.

Campus life
Now look at the costs for books, entertainment, activities, sports, and dues. Don’t forget fraternities, sororities, and clubs.

If your child chooses a school far away, add airline tickets to the budget. If they are attending school closer, add gas, insurance, licensing costs, maintenance, and a car. If your child will return home by train or other transit, those costs also need to be considered.

Independent living
Dorm life is not for everyone. Some schools allow students to live off campus at any point, while others have requirements for students to spend time in the dorms. If your child chooses housing off campus, there will be bills for rent, utilities, food, and transportation. Even if they live at home, there will be costs for transportation and activities.
Wells Fargo Advisors does not render legal or tax advice.

Please consider the investment objectives, risks, charges and expenses carefully before investing in a 529 savings plan. The official statement, which contains this and other information, can be obtained by calling your Financial Advisor. Read it carefully before you invest.

This article was written by/for Wells Fargo Advisors and provided courtesy of Don Chiodo-Senior Financial Advisor in Clare at 989-935-5000.
Investments in securities and insurance products are: NOT FDIC-INSURED/NOT BANK-GUARANTEED/MAY LOSE VALUE.

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