Education Cost Planning:
| John Rukosky of Rukosky & Associates |
We believe there is a critical difference
between our firm and others that
perform only financial planning: while
others will refer you to a tax advisor
after having designed a financial plan
for you, at Rukosky & Associates
Financial Group Inc. you are
consulting with a tax accountant, so
we know your plan will succeed.
between our firm and others that
perform only financial planning: while
others will refer you to a tax advisor
after having designed a financial plan
for you, at Rukosky & Associates
Financial Group Inc. you are
consulting with a tax accountant, so
we know your plan will succeed.
Contact us:
508 Driewood Court
Raleigh, NC 27609
Office: 919.781.9319
Mobile: 919.906.4234
Fax: 919.791.0990
Email: john@rafginc.com
Raleigh, NC 27609
Office: 919.781.9319
Mobile: 919.906.4234
Fax: 919.791.0990
Email: john@rafginc.com
Even though they can irritate us at times, or get into trouble and cause
us heartache, we still find that we love our children and that we want the
best for them. Getting an education will be one of the most important
accomplishments of their lives. But, not planning for education costs can
cause tremendous pressure on a family…and can be avoided.
us heartache, we still find that we love our children and that we want the
best for them. Getting an education will be one of the most important
accomplishments of their lives. But, not planning for education costs can
cause tremendous pressure on a family…and can be avoided.
This issue usually goes three ways: little or no savings at all (usually
the case), not knowing if what is being saved is enough (the standard
rule), or saving too much (rare, but it happens).
Right now, according to the website for North Carolina State University,
first year costs are estimated at $15,197. “Other Personal Expenses”
and “Transportation” costs can be subtracted if you want, leaving total
costs estimated as $13,417. If your child will live at home rather than on
campus, subtracting room and board decreases total costs to $6,047 for
the academic year.
If your child is currently 4 years old, let’s say, and education costs
continue to rise by 5% each year for the next fourteen years, your child
will be looking at a first year cost of approximately $11,973 and a total
four-year cost of $51,604, if they don’t stay on campus.
Sounds like a lot, which is why many of us run away and hope that our
child is Einstein and gets a scholarship. But what if I told you that if you
saved only $162.50 each month, and you could earn 8% interest on
those savings each year for the next fourteen years, by the time your
child entered college, you would have saved up $50,997? Surely your
child could scrape up the other $607, right? And, if you could earn 11%
on your investment over the fourteen year period, you would only have to
save $129.17 per month...for your child to have a future.
But here’s the problem…you have to know where you stand! And, only
planning can accomplish that for you…and them.
the case), not knowing if what is being saved is enough (the standard
rule), or saving too much (rare, but it happens).
Right now, according to the website for North Carolina State University,
first year costs are estimated at $15,197. “Other Personal Expenses”
and “Transportation” costs can be subtracted if you want, leaving total
costs estimated as $13,417. If your child will live at home rather than on
campus, subtracting room and board decreases total costs to $6,047 for
the academic year.
If your child is currently 4 years old, let’s say, and education costs
continue to rise by 5% each year for the next fourteen years, your child
will be looking at a first year cost of approximately $11,973 and a total
four-year cost of $51,604, if they don’t stay on campus.
Sounds like a lot, which is why many of us run away and hope that our
child is Einstein and gets a scholarship. But what if I told you that if you
saved only $162.50 each month, and you could earn 8% interest on
those savings each year for the next fourteen years, by the time your
child entered college, you would have saved up $50,997? Surely your
child could scrape up the other $607, right? And, if you could earn 11%
on your investment over the fourteen year period, you would only have to
save $129.17 per month...for your child to have a future.
But here’s the problem…you have to know where you stand! And, only
planning can accomplish that for you…and them.
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