How Much Money Should I Save For College

How much money should you have saved by the end of college?

By the end of college I would hope you have at least $1000 in savings to cover any unexpected bills (such as a new tire, a broken appliance, or medical bill). However, working through college you should do every thing you possibly can to pay for college as you are attending while also keeping your grades at adequate levels. In other words - do not go into debt for education - pay cash for college - do not take out student loans if you can avoid it!! Students loans are the nemesis to having a good financial outlook when exiting college. Savings are important, but you can build savings and wealth much easier if you are not drowning in debt.That being said, it can be tough to find a good way to make income while in college because courses are demanding and schedules are wonky. I suggest finding something that is on your own time and maybe even internet-based. I love my side gig, even though I’m not in college any more I work full time and have 3 kids…. to say that my life is demanding and my schedule is wonky is absolutely accurate! If you’re open to finding new ways to make money on your own time/schedule, feel free to reach out to me.

How much money should I have saved up by the time I go to college?

$120k to attend an ivy league… Is that with or without financial aid? Many are $60k+/year now without financial aid…They have a mediocre return on investment compared to good state schools. You could pay cash for a community college and then transfer to a good state school (GA Tech) and do just as well in the job market. I went to an ivy. My friends went to a state school. We both have the same jobs, and they paid less than half for college.If you do take out loans, make sure with your profession and expenses you can pay them off in < 3 years. Preferably < 2 years. Your early career money is EXTREMELY valuable b/c it has huge time value when invested and needs to used as efficiently as possible. Plan it all out in the beginning and look at the big picture.Large student loans will cripple you. If you went the cheaper school route, you’d be able to retire years earlier.

How much money should a parent save for college?

Questions like this worry me.Making a success out of college is really difficult today.If this is what you are worrying about when you are thinking about sending your kid to college, you haven’t thought about the subject enough.For example, if your student is really, really smart and you live someplace like Gainesville, FL, they might be able to send your student to college, almost for free.Florida Student Scholarship & Grant ProgramsYou might want to start with Frank Palmasani’s book, Right College, Right Price, and start learning about how to pay for college.PSAfter you finish that book, here are two more I would recommend:Kalman A. Chany with Geoff Martz, “Paying for College Without Going Broke,” (New York, New York: Penguin Random House LLC, 2016).Bonnie Kerrigan Snyder, “The New College Reality: Make College Work For Your Career,” (Avon, MA: Adams Media, 2012).

How much money should you save before entering college at all?

That is very much a function of what your cash flow during college is going to be, relative to the expenses you will have after credits from scholarships.  It also depends on whether you want to be debt-free at the end of college, or are willing to accept college debt because in getting a degree your income will likely rise substantially so you can pay the debt off quickly.  This is not a simple question.

How much money should I be saving for college while I'm in high school?

Save as much $$$ as you can.You are going to need it, as college is expensive.Keep in mind that you have to continue to study for your classes in order to get excellent grades. Another consideration is studying for the SAT/ACTand participating in extracurricular activities like ASB (Associated Student Body), various clubs, volunteer opportunities (i.e, a nursing home or a hospital), and/or sports.The above activities take time, and take precedence over a job.I remember allowing our children to work minimally, just for a little extra money and the experience of having a job (10-15 hours max).If you have relatives that give you gifts, ask for money to be placed in a college account in your name.Hopefully, your parents have saved some money for your college already.If they have, this is a great help. If they haven't, start NOW!There are scholarships, but those are very few, and difficult to get unless your parents are unemployed and/or do not own property. It is nice if you qualify, but if you don't make plans now.If there is no money, get a part-time job during the summers and save your money. Try getting into the local community college. The tuition is less expensive that way. After that, you can transfer to a local four-year university.  Be very directive with your choice of majors. Find one that has a decent paying job after you have completed your four years.Try to keep your loans to a bare minimum, because they eventually have to be paid back, regardless of your lack of ability to pay. If you can't pay, the interest on the old loan compounds and you may never get it paid off.Even if you claim bankruptcy, the government will NOT forgive the loans, they will take the money out of your social security check if need be. When you graduate from college, pay the loans off ASAP.Get them off your "back," even if you have to live at home and make double payments.If you have parents or other family members who are willing to help you with your education, you are fortunate. Study hard and do well in your life.That will be your "gift" to them in return. Be very appreciative and tell them so. This is money that could have been used for their retirement, cars, a larger home, or other things.Good Luck!

How much money will I need to save for my child to go to college?

I’ll leave it to others to give you estimates of how much it will cost. A quick google search can help as well.I do, however, believe it’s a mistake to specifically set aside money for your children’s college. A much better approach is to be a max saver for your own retirement. As a consequence, you won’t be a burden on your children later in life, and you may well be in a position to help them financially once they’re ready for college.You don’t have an obligation to pay for your kids college, but you do have an obligation not to be a burden on them.To be a max saver for your own retirement, in a perfect world you will:Max out 401(k) (typically 15%) in a stock index fund.Max out you and your wife’s Roth IRA ($6K/yr each), mainly in a stock index fund.Then save some more in a brokerage fund, mainly in a stock index fund.