If you have recently had a wonderful addition to your family, there are most likely a lot of things that are on your mind. But among these things that you probably have not even considered is college. Now I know what you're thinking, 'he/she just came out why would we start thinking about college now?' Well this is the perfect time to start thinking about that. The sooner you start thinking about that, the sooner you can begin planning and gathering funds to help with this expense that will come sooner than you might think.
A child born in 2013 that begins kindergarten in the fall of 2018 would attend college between the years of 2031 and 2035. If that child attends an average private four-year college, and if the annual price increases for private colleges experienced over the last 30 years (+5.7% per year) continues into the future, the aggregate four-year cost of the child’s college education (including tuition, fees, room and board) would total $483,238 or $120,810 per year.
Now, immediately two questions arise when presented with this information: are you saving enough to cover this expense? And how will your family pay for it if something was to happen to you?
he first question depends primarily on your cash flow and investment acumen. The second can be solved with the purchase of life insurance. The cost for the premium will be pennies on the dollar. The cost for not doing this may be a child who is unable to go to college or has incredible financial struggles to do so. Take the time to take the steps necessary to insure your child's future.
Brett Royster
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