Cost Of Delaying Savings

Summary

Your Savings Goal

Monthly Contribution Needed

With {{ user.currentSavings | currencyShort }} currently saved and a {{ user.rateOfReturn }}% rate of return, you must save per month to meet your savings goal of {{ savingsTarget() | currencyShort }}. The table below lists the additional and total monthly contributions needed for each year savings is delayed for the next five years.

Years Delayed	Additional Monthly Contribution	Total Monthly Contribution

Additional Monthly Contributions

The chart below shows the additional amount you will need to save each year if you delay the start of your savings program. For example, hover over year 1. If you wait three years to begin saving, you will have to increase your monthly contribution by {{ (user.monthlyContributions[1] - user.monthlyContributions[0]) | currencyShort }} to reach the same end savings amount as if you began saving today.

Recapturing Delayed Savings

The information above assumes a savings goal that is {{ user.percentOfCollegeCost }}% of the total cost of college. Below is analysis of how choosing savings goals at different percentages of college cost affects the monthly contribution needed to meet the goal, and how much more it increases every year that savings is delayed.

	Monthly Contribution
Years Delayed	100% of Cost	75% of Cost	50% of Cost	25% of Cost

Assumptions

The following assumptions are made in the above calculations:

College savings are compounded monthly based on the hypothetical rate of return.
Children will attend college immediately after their senior year of high school. Children who are in Pre-K will attend school when they are 18 (based off of their birth year). These assumptions affect the time value of money in the future value estimates of our savings and college costs.
No withdrawals are made during this time period
No deduction for fees

Disclosure

The following college data has been collected from the Integrated Postsecondary Education Data System (IPEDS):

Tuition & Fees
Expenses
Room & Board
Books and Supplies

When selecting a college, "National Averages" is the average of all the educational institutions that report their data to IPEDS that fit the given criteria e.g. National Private NonProfit Four-Year is the average of all private, non profit, four-year schools provided by IPEDS. By default, the cost of attendance of all colleges (including national averages), include the sum of the tuition and fees, expenses, room and board, and books and supplies.

The Cost of Delaying Savings Calculator is intended to provide an estimate of the additional contribution one must make when they delay saving for college based on (a) information provided by colleges and universities to the IPEDS data base, (b) assumptions, some of which may be provided by the user, with regard to the college inflation rate and the rate of return on savings, and (c) information provided by the user. The Cost of Delaying Savings Calculator does not reflect management, administrative and other fees associated with 529 plans. If these fees had been reflected, any growth of the account value during the same investment period would have been lower. All investing is subject to risk, including the possible loss of the money invested. Investments in a 529 Plan are neither insured nor guaranteed. These hypothetical scenarios are intended to be an illustration of potential outcomes and are not to be considered advice or recommendations and are not guarantees of future results.

The Cost of Delaying Savings Calculator is supplied by Invite Education, LLC and Invite Education, LLC does not guarantee the accuracy, suitability or usefulness of these results, and shall not be responsible for any investment or trading decisions, gains or losses, or advice resulting from this analysis.

Please consult investment, tax or legal advisors for qualified professional advice in these areas.

All investing is subject to risk, including the possible loss of the money invested

Savings Plan