A Step-By-Step Guide to Calculating College Costs and Required Savings

From Ken Clark, former About.com Guide

While there are plenty of college cost and savings calculators available online, it’s wise to compute it by hand at least once. Doing so gives you a better sense of whether or not other estimates are in the right ballpark.

Here are the basic steps for calculating your future college costs, as well as the required annual savings to meet a shortage in funds:

Previous

• Introduction
• Determine What Your College of Choice Costs Now
• Determine What Your College of Choice Will Cost in the Future
• Determine What Your Current College Fund Will Be Worth
• Determine What Your Future Shortfall Will Be
• Determine What You Need to Save Each Year to Cover the Shortfall
• Begin Investigating Your Savings Options

Next