The average American graduates college with more than $29,000 in student loans.
And odds are they will be making monthly payments on those debts for the next 20 years of their lives.
If you’re like many current or prospective parents, you want your kids to go to college without taking on burdensome loans.
But knowing how far your savings will go in the future can be hard to map out. If you set a goal of $100,000, it can be easier to work your way backward.
Starting early and using the right tools will take a little bit of money now, and add up to a good chunk of tuition by the time your kids are ready to go off to college.
The first tool you’ll need is a 529 college savings plan. They vary but allow you to save money for a child’s future education costs and offer much more than a traditional saving account. Your savings are often tax deductible, can be invested while growing tax-free and have low minimums making it easy to start.
CNBC did the math, and we can tell you how much you need to save now to give your child $100,000 for college. Check out this video for a full breakdown of your options as well as a case study on how to pay for your child’s college education.
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Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.