Smart401k Blog

  • Saving for Retirement or College?

    The national average in today's dollars is $12,841 annually. This amount covers tuition and fees, books and supplies, room and board, etc. Using a 5% inflation rate, with 16 years until college, I'm looking at a total cost of $120,814. This is assuming he finishes school in four years (if he's like me, it will take longer) and assumes I will have no other children (unlikely). The reality is that most families will qualify for some financial aid, but even so, the amount needed to fund a child's higher education is daunting.
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