Advanced Math Investing

Investing For College

How do I save for college? What does it cost?

Estimates are for the year 2023, tuition and fees only. No food, transportation, books, or housing is included. These numbers will be higher in the year your child graduates high school.

  • 1 IVY league 78,000/yr.
  • 2 Private (UM) 60,000/yr.
  • 3 State (UF) 6,381/yr.
  • 4 Community college 5,339/yr.
  • 5 Trade school 4,336/yr.
Numbers are from June 2023, and assumes you have a 1-year-old child. Includes Private, public, community, & trade schools accept, plus many out-of-state schools. $244.01 a month. 199 payments, with a total cost of $48,558.

The total value is unknown. They just guarantee tuition and some fees. More expensive schools will probably have a balance due.

Pros: No income limitations. Transferable to other family members.

Cons: If no college is accepted or no transfer child is available, funds are returned without any gains.

If a monthly payment is overdue, you can be kicked out of the plan. Only your money is returned. No investment gains.
$205.00 a month. 199 payments, with a total cost of $40,795.

The value estimated at graduation is $73,493.

Pros: No income limitations. If you miss a payment you are not booted out.

Con’s: Very conservative investing lower returns than a stock-only fund.
$166 a month. 199 payments, with a total cost of $33,034. The value at graduation is $69,775 (assuming a 7.7% return).

Pros: Low payments. If a payment is missed no penalty, transferable to another related family member, or transfer to a taxable account and pay the deferred taxes.

Con’s: Child must use by age 30, income-restricted to $190,000 AGI married or $110,000 AGE single. Maximum contributions 2,000 a year (166 a month).