Here’s proof you should start saving for college now.
I sat in on a 529 Savings Plan webinar put on by College Savings Plans of Maryland. Very informative. They shared this chart that shows the value of starting the little nipper’s college fund as soon as possible.
Save $200 a month from birth and you’ll have over $86,000* by the time college rolls around. Wait five years to start saving and that same $200 per month will grow to just over $50,000. That’s a $30,000 difference (yes, I’m a brilliant mathematician too).
Sure, newborns are ‘spensive; diapers, wipes, gear, diapers… But it would be even more difficult to try to start putting aside $200 every month for college savings when your child is five, eight or ten years old.
Don’t say I didn’t warn ya (and don’t forget to read the fine print down there).
* Chart assumes a hypothetical 7% rate of return compounded monthly. This chart is for illustrative purposes and does not represent the return of any specific investment option. Investment returns in a college savings plan will vary and may be higher or lower than this example. Making automatic contributions does not assure a profit or protect against loss during varying market conditions. The depiction does not include fees and any fees assessed by the investment offering could have an impact on returns.