How much do you need to save?

With the expected price of a private-college diploma for today's four-year-old topping $250,000, you may blanch at the thought of saving the entire tab. It's more realistic to aim to pay a portion of the bill out of savings and cover the rest with aid, loans or cash flow. For 10-year-old Moriah, the Sellses must save $528 a month to pay half at a private school vs. $1,056 to cover the whole cost.

Child's Age (Years)
Total Projected Cost
Estimated Monthly Savings Required
Public
Private
Pay 25%

Pay 50%

Pay 100%
1
$121,521
$302,860
$66
$164
$132
$328
$263
$656
4
103,430
258,286
74
186
149
372
298
743
7
88,032
220,273
87
217
173
433
346
867
10
74,927
187,855
105
264
211
528
421
1,056
13
63,772
160,207
138
346
276
693
552
1,386
16
54,279
136,629
209
527
419
1,054
838
2,109

Notes: Cost estimates include tuition, room, board and fees for four years and are based on historical figures from the College Board. Monthly savings amounts assume a 7% annual return, compounded monthly; that the student begins college at age 18 and investments continue until the beginning of the fourth year of school; that the money grows tax-free in a 529 plan; and that tax-free distributions from 529 plans are extended beyond the 2010 scheduled expiration.