According to the College Board for the 2009-2010 Academic Year, the average in-state tuition at a four-year public college is $7,020 and $26,273 at a four-year private not-for-profit college. For room and board, add $8,193 to the public institution and $9,363 to the private not-for-profit college. So, now you have a total annual cost of $15,213 for public and $35,636 for private, and that is for tuition alone.But what about the additional expenses for books, lab fees, activity fees, computers, transportation, entertainment, etc.?
In twenty years, the average four-year college education is expected to cost around $190,000 for public schooling and $330,000 for a private education, according to a recent poll. At the same time, parents actually only save an average of $9,956 for their children’s higher education.
What is sad about this is that nearly half of all parents save nothing at all! Yet, at the same time the cost of tuition has risen by eight and ten percent for public and private schools, respectively over the last ten years. To add to this gloomy picture, family income during the same period only rose five percent.
Research also shows that many individuals struggle to develop education funds in advance of their children’s entrance to college or private elementary and secondary schools. Many never even attain this goal together with other financial goals simply because they were never informed or exposed to the financial realities of life.
And as the old saying goes, “They didn’t plan to fail, but rather failed to plan.”
The key then is planning! A sensible workable financial game plan to chart your children’s way to college or if yourself is looking at funding your way to college.