Member-only story
How Much Should We Save for Our Kid’s Education?
As a parent, we always want to do what’s best for our children. Paying for a college education is a difficult choice to make for several reasons. But, no one wants their kids to be weighed down with tens of thousands of dollars of student loan debt either.
Sure, you can wait until your kid is nearly ready to leave for college to worry about how you or they will pay for it. But what if they can’t? What if the financial burden of tuition is too much?
College costs have seen a severe increase since the Great Recession. According to GoBankingRates research, tuition and fees rose 44% at four-year, private colleges and 55% at public four-year schools from 2009 to 2019.
With that said, you’d be correct to assume tuition will only get more expensive as time passes — unless recent events create a wholesale change in the system.
Experts have predicted a 5% increase over the next twenty years. For most universities, this means thousands of dollars in additional tuition.
But don’t panic!
Once you know what to save for and how much to save, you can rest assured your child won’t spend the best years of their life with the dark cloud of debt hanging over their head.
