Why education costs need their own plan
College and university costs have historically risen faster than general inflation — often 4–6% a year versus ~2–3% for everything else. That gap compounds brutally over the 10–18 years between a child's birth and their enrollment, which is why "we'll figure it out later" so often turns into loans. This calculator projects the real future cost and the monthly saving that funds it.
How the projection works
Each future year of study is today's cost grown by education inflation to the year it's incurred, then summed across the years of study. Your existing savings are grown forward at your expected return, and the remaining gap is converted into the level monthly contribution needed to reach it. Because your savings keep earning during the study years too, the estimate is deliberately a touch conservative — a small safety margin rather than a shortfall.
Levers that make it achievable
- Time is everything. Starting when a child is born versus at age 10 can cut the required monthly saving by more than half, because compounding has far longer to work.
- Use tax-advantaged education accounts where available (such as 529 plans in the US) — tax-free growth for education dramatically improves the outcome.
- You don't have to fund 100%. Many families aim to cover a portion, with the rest coming from current income, scholarships, work, or student aid. Set a realistic target percentage and plan for that.
- Invest for growth early, de-risk near the end. With a long horizon, stock-heavy index funds suit the early years; shift toward safer holdings as enrollment approaches so a crash can't derail the fund — the same allocation logic as retirement.
Keep it in perspective
The projected numbers can look daunting because education inflation is relentless — but broken into a monthly amount started early, the goal is usually far more reachable than the scary total suggests. And funding education is a balance: never sacrifice your own retirement saving entirely for it, since students have borrowing options that retirees do not. Fund education alongside, not instead of, your own future.