When I graduated from college 28 years ago, the cost of a one 3 credit course was approximately $42. The same course now (at a state school) will run approximately $420! Parenting children who are planning to go to college takes time and effort. Any financial planner will tell you, “the sooner you begin, the better.” This article will help you begin that planning with some up-to-date ideas to help you financially plan your child’s college career.
If you’re good at planning ahead…
You may have thought about it before your child was even born, perhaps while you were shopping for a bassinet and teddy bears. At any rate, you probably started thinking about it when your child was very young. After all, it’s one of the major responsibilities you face as a parent: your child’s college education.
Personal growth and expanded horizons are reason enough to send a child to college, but there are more practical considerations, too. College graduates have more jobs to choose from, and they generally make more money than people who have a high school education. That makes a college education very important for your child’s future.
Start Early, Early, Early
As a parent with an eye to the future you should start early to save for your child’s college education. College costs have risen consistently for the past 10 years, and there’s little reason to think this trend will reverse itself. Most cost estimates predict annual increases of 5% or more. What’s more, many people take more than four years to finish college and some go on to postgraduate studies, so you may need to save even more.
To see just how expensive college is likely to become, take a look at the chart below.
A child born in 2003 will probably start college in the year 2021, when a private college education could cost over $69,940 a year! Of course, these are only average estimates. If you have a specific school in mind, you may wish to contact the school – now and when the anticipated date draws closer -for information on tuition costs, how they have changed and the trend for future increases.
Estimated Cost of One Year of College
Education, Including Room and Board
School Year
Public – 4 Year
Private – 4 Year
2002-2003 12,841 27,677
2003-2004 13,483 29,061
2004-2005 14,157 30,514
2005-2006 14,865 32,040
2006-2007 15,608 33,642
2007-2008 16,388 35,324
2008-2009 17,207 37,090
2009-2010 18,067 38,945
2010-2011 18,970 40,892
2011-2012 19,919 42,937
2012-2013 20,915 45,084
2013-2014 21,961 47,338
2014-2015 23,059 49,705
2015-2016 24,212 52,190
2016-2017 25,423 54,800
2017-2018 26,694 57,540
2018-2019 28,029 60,417
2019-2020 29,430 63,438
2020-2021 30,902 66,610
2021-2022 32,447 69,940
Cost figures assume a 5% annual increase and use as a base The College Board Trends in College Pricing 2002 survey data for the current school year (tuition, room and board, transportation, books and other expenses).
Source: The College Board Trends in Pricing 2002.
