Tuition Savings Calculator

Being the proud parent of two children, I am glad that one of them has already completed her bachelor's degree, and the other will not break our bank accounts as he earns his degree in the coming years. I am proud to say that putting two children through two pricey private universities will actually not cause us to go into any debt at all. I wrote this little program that actually lets you compute for more than one child the growing costs of higher education (most on-line calculators make you do it one at a time).

So here you put in the current astronomical annual tuition, room, board and other costs of your favorite institution and what you think your average tuition inflation and investment return will be. Then put in the years until your children go to school and how much you have already to invest and how much you will contribute each year.

Note that you can put away a rather piddly $2,000 a year in each childs name in an "Coverdell Education IRA" where all the earnings are not taxed when you withdraw the funds. Similarly, many states now sponsor 529 plan savings programs. See for more information.

Shockingly, they say only 3% of U.S. families own a 529 or Coverdell account. I have the full report here for anyone who is interested.

Current Total College Expenses
(Tuition + Room/Board + Others)
Tuition Inflation %
Investment Return %
Years Until First Child Starts College
Years Until Second Child Starts College
Years Until Third Child Starts College
Years Until Fourth Child Starts College
Current Savings
Annual Contribution to Savings
Contribution Inflation %
Marginal Tax Rate (0 for 529 or Coverdell) %
Use 99 for those children you don't plan on having!

Hugh Chou