Main Menu Name: Educate
Calculates, for up to 10 children, the annual cost of education, the total cost per child, the total cost for all children, the present value of the future cost per child (what you need today to meet anticipated future needs), and the total present value of education needs.
In this article:
The average annual cost of tuition, room, and board, for both public and private institutions, has grown quickly over the years. This trend is likely to continue. So early planning, to take education costs into account, is the best way to minimize the overall effects on your family budget.
Why should I use this calculator?
- To quantify specific dollar needs for education.
- To analyze the need and timing of educational loans.
- To measure life insurance needs to guarantee the availability of education funds.
In 2018, the average annual cost of tuition, room, and board for private colleges was over $48,000. Costs for public institutions were over $21,000. Costs for Ivy League schools were over $58,000 per year. Resources: Ivy League and Public and Private. When using this calculator, it would be wise to assume that college expenses will continue to increase about 6 to 10 percent per year as they have done for almost the past 30 years.
- Name: Enter the client's name.
- Expected Rate of Return: Enter the rate of return that is expected on investments.
- Current Year: Enter the starting year (current) year of the analysis.
- Number of Years: Enter the number of years until the first child begins college.
- List of Children: Click Add to enter a new child to the list. Click Edit to make a change to an existing child on the list. Click Delete to clear a child off of the list.
The program calculates the total cost per child and the total amount needed for all children. It also calculates the present value of each child's need and the total present value of all education needs. The Yearly Costs tab shows the yearly amount needed for each child.