Jean Chatzky: The School Tab
Jean Chatzky is the editor-at-large
for Money Magazine and serves as AOL's
official Money Coach. She is the financial
editor for NBC's Today Show and often hosts
a series of money minutes, "Talking Money
with Jean Chatzky," on CNBC. Jean is a columnist
for Time Magazine and USA Weekend
magazine and is the author of four books,
including the best-seller, You Don't Have
to Be Rich. Her latest book is PAY
IT DOWN: From Debt to Wealth on $10 A Day.
Jean graduated from the University of Pennsylvania
with a BA in English. She was born in Michigan and
raised in Wisconsin, Indiana and West Virginia.
Now, Jean and her family call Westchester, New York,
home.
Jean Chatzky Article Archive
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In 2002, according to the College Board, the cost of a four-year education at a public college or university was about $54,200 for state residents. The cost of four years at a private college or university was a little more than double that amount: $118,000. And college costs are rising at about 6 percent annually. That's why it's important to thinking about saving right away, even if your child is only two years old. If you open a tax-deferred account today, this is how much you'll be able to save:
Monthly
Contribution | 5 Years | 10 Years | 15 Years | 20 Years |
| $50 | $3,233 | $7,704 | $13,203 | $20,210 |
| $100 | 6,775 | 15,408 | 26,406 | 40,419 |
| $150 | 10,163 | 23,112 | 39,609 | 60,629 |
| $200 | 13,551 | 30,816 | 52,813 | 80,839 |
What if you don't start today? What if you wait five years? Twenty years from now that $50 a month is worth only $13,203; that $100 a month is worth only $26,406; that $150 a month is worth only $39,609; and that $200 a month is worth only $52,813.
The point is, it's not just a matter of how much you're able to sock away; it's also a matter of when you start.
© 2005 Jean Chatzky. For more Jean Chatzky articles, see www.jeanchatzky.com.
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