College Savings Calculator
Are you a potential college student excited by the prospect of student life but worried about the estimated cost? Do you strive to be responsible and save money so as to put towards the cost of college? Are you curious as to how much you would have to save each month in order to reach your target? If so, this calculator is the one for you. The college savings calculator is a simple tool designed to give prospective college students an idea of how much money they need to save in order to cover the cost of college – or, at least, to cover a portion of the cost of college. It will take into account the time period and interest to be applied, and give a figure of how much needs to be saved per month.
How to use it
To use the calculator, begin by entering the amount of money you wish to save before leaving for college: your target amount, in dollars. Underneath this, enter the amount of years you have before entering college. This should take into account the time it will take you to graduate high school and any period of time between that and college – gap years, for example. You can also enter the amount of money, if any, you have saved up to this point. The easy-to-use calculator will then show you how much more you need to save each month before leaving for college. This will allow you to manage your finances with a monthly figure in mind.
While the college savings calculator is very simple, it is worth inserting a few average figures so as to see how it works. As an example, we can imagine that a prospective college student is hoping to save $10,000 to put towards college. Therefore, enter this figure into the box marked “Target Amount”. We can also imagine that this pupil has 2 years left of high school, and is planning take time off between school and college to earn some money. Therefore, we can enter a total of 3 years. The interest on this figure is 5%, and the student has already saved $5,000. If we enter all these details into the college savings calculator, we find that must save a further $3,172 per year to reach their target amount.