Saving for College
As a parent, you want the very best for your children, including the opportunity to pursue their dreams. If these dreams begin with a college education, making sure you have adequate financial resources to cover the cost of college is important. No matter whether your family's plans include a state university in the Midwest, or an Ivy League school on the East Coast, the cost of a college education continues to increase each year, which makes it even more important to provide enough insurance protection for your family. Here are some helpful facts to consider in planning for the financial commitment of your child's college education.

The cost factors of a college education.
Estimating your college savings needs.

The cost factors of a college education.
The full cost of a college education goes far beyond tuition. Here are some of the factors to consider in calculating the annual cost of your child's college education.

  • Tuition and fees
  • Room and Board
  • Books and school supplies
  • Furniture, computers and household items
  • Medical expenses
  • Car payments, taxes and insurance
  • Travel expenses
  • Entertainment and other daily living expenses
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Estimating your college savings needs.
The cost of a college education has more than doubled in the last 10 years. Annual in-state tuition for a public college averages $10,000 per year. Costs for private colleges can be three times higher. Factoring in 5% annual inflation for the next 10 years, and the cost for four years at a public university could easily reach $65,000 and more than $200,000 for a private college. (Source: Kiplinger's Personal Finance Magazine, March 1999).

To estimate your child's college funding needs, take the following factors into account.
  • Annual estimated cost of colleges being considered.
  • Number of years until your child begins college.
  • Number of children you will send to college.
  • Amount that can be set aside annually for college savings.
  • Amount likely to be available from household income during your child's college years.
  • Student employment income to be applied to college costs.
  • Eligibility for student loans and willingness to assume debt for college expenses.
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