How Much Money Per Month Should You Save to Pay for College?

It is never too late to save for your child's college.

Saving From Birth

If you plan to save throughout your child's life for college, then $200 a month at an average 7 percent yield will give you $80,000 dollars by the time your child is 18 years old.

It is Never Too Late to Start Saving

Even if you start late in your college savings plan or you can't afford $200 per month, every dollar you put toward college will earn interest and will get you closer to your goal.

Bottom Line

Start saving as soon as you can, as much as you can, for your child's college fund. College tuition that is $10,000 a year in 2010 are projected to be $20,250 a year in 18 years.

References

• FinAid: Saving for College
• The Incidental Economist: Saving for College: How Much?
• Archimedes Systems: College Cost Quick Projector

Resources

• Archimedes Systems: College Planning Calculators