Getting started with college savings

How you can start preparing now for your child’s college tuition

You understand the power of making smart investments. It can give you freedom and flexibility to do what you want. For many, a college education is one of the smartest investments you can make, generating important intangible benefits — new ideas, broader experiences, cultural awareness, and self-confidence. Plus, higher learning often leads to higher earning power.

For others, a trade school education is more beneficial, since they can learn a trade and enter their profession in 18 to 24 months, compared to the four-plus years it takes to earn a bachelor’s degree. Plus, it costs less, as little as $5,000 a year.1

It’s no surprise that higher education tuition costs are expensive. For example, a recent report states that college tuition inflation averaged 4.63% every year from 2010 to 2020, and tuition at the four-year institutions increased 31.4% during the same decade.2

It seems that the pandemic had somewhat slowed the increasing costs of tuition, fees, and room and board. From the academic year 2019–2020 to 2021–2022, average costs dropped 0.2% at private nonprofit four-year schools. And costs dropped even more (1.7%) from 2020–2021 to 2021–2022.3


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