AIE — Adventures In Education

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College Cost Chart

Do the math — How long will it take to save enough money for college?

The following charts show the amount you need to save to have $10,000 available for college expenses.

Assuming a 4 % interest rate:

Age saving beings Years of saving Monthly savings Principal Interest earned Total savings
Newborn 18 $32 $6,912 $3,187 $10,099
Age 4 14 45 7,560 2,552 10,112
Age 8 10 68 8,160 1,853 10,013
Age 12 6 124 8,928 1,144 10,072
Age 16 2 401 9,624 378 10,002

Assuming an 8 % interest rate:

Age saving begins Years of saving Monthly savings Principal Interest earned Total savings
Newborn 18 $21 $4,536 $5,546 $10,082
Age 4 14 33 5,544 4,621 10,165
Age 8 10 55 6,660 3,462 10,062
Age 12 6 109 7,848 2,183 10,031
Age 16 2 386 9,264 746 10,010

Remember that this information is designed to provide you with some general information about savings plans. You should learn specifics about any savings or investment plan in which you decide to place your money.

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