Tool 01 — Finance

What college actually costs

Sticker price today isn't the number that matters. Tuition has outrun general inflation for four decades straight, so the real question is what it costs the year your kid enrolls — and what you'd have to put away each month to be ready for it.

Monthly savings needed

Projected balance What you put in
Cost at enrollment
Your target
On track for
Gap
Why the number looks brutal. Tuition has risen about 5% a year for decades — roughly double general inflation. A newborn today faces sticker prices that look absurd from here. Two things soften it: you have 18 years of compounding, and almost nobody pays sticker. Published discount rates at private colleges now average over 56% for first-year students.
Fund your retirement first. This is the one order-of-operations rule that matters. Your kid can borrow for college. Nobody lends for retirement. Capture your full employer 401(k) match before a dollar goes into a 529.

Year by year

YearChild's age Contributed Growth Balance