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Definitions
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| Age of children |
Current age of your children. This calculator is based on each child
beginning their college education at age 18. The difference between their
current age and 18 is the number of years you have to save.
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| Annual tuition |
Current estimated cost of one year of tuition and books. This amount
should be per child and be specific to the school they may be interested
in attending.
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| Room and board |
Current estimated cost of one year room and board. Like tuition and
books, this amount should be per child and specific to the school they may
be interested in attending.
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| Education cost inflation |
This is the percentage that you expect educational costs to increase per year. |
| Current Savings |
The total amount you currently have saved for your child's (or children's) education. |
| Monthly Additions to Savings |
The amount you plan to save per month. |
| Rate of Return |
The annual percentage rate you expect to earn on your educational
savings. The average rate of return on the U.S. stock market has been 11%
for the last 75 years. You may wish to use a more conservative rate of
return if your child is within 10 years of attending school.
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Information and interactive calculators are made available to you as self-help tools for your
independent use. We can not and do not guarantee their accuracy or their
applicability to your circumstances. We encourage you to seek personalized
advice from qualified professionals regarding all personal finance
issues.
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