|
| Amount of Savings |
Save whatever you can, even if it is just $25 to $50 a month. It is rather difficult to start saving. But once you start saving, you will find it much easier to increase the amount you save later.
The more you can save the better for you. Saving just $25 a week from birth to age 17 at 5% interest will accumulate $34,839.45, a nice college fund.
The following table shows the results of saving different amounts per week at different interest rates and various numbers of years to admission. The first three columns demonstrate the results of saving money in family that starts saving when the child enters high school. The last three columns present a family that starts saving when their baby is born.Growth of Weekly Savings Weekly
Amount | 0%
4 years | 5%
4 years | 10%
4 years | 0%
17 years | 5%
17 years | 10%
17 years | | $10 | $2,080 | $2,304 | $2,559 | $8,840 | $13,936 | $23,263 | | $25 | $5,200 | $5,759 | $6,399 | $22,100 | $34,839 | $58,157 | | $50 | $10,400 | $11,518 | $12,797 | $44,200 | $69,679 | $116,314 | | $100 | $20,800 | $23,036 | $25,594 | $88,400 | $139,358 | $232,627 |
The following table presents how much you'd need to save per week in order to reach various savings goals at 8% interest at various numbers of years to admission.
Weekly Savings Required to Reach Savings Goal
| Goal | 1 year | 4 years | 8 years | 12 years | 17 years | | $5,000 | $92.29 | $20.38 | $8.58 | $4.77 | $2.66 | | $10,000 | $184.58 | $40.76 | $17.16 | $9.54 | $5.32 | | $25,000 | $461.45 | $101.92 | $42.88 | $23.86 | $13.28 | | $50,000 | $922.90 | $203.84 | $85.76 | $47.72 | $26.56 | | $100,000 | $1,845.82 | $407.68 | $171.53 | $95.42 | $53.11 | | $250,000 | $4,614.54 | $1,019.20 | $428.81 | $238.56 | $132.78 |
|
|
