Chart 7 shows how much you would need to save each month in order to have $10,000 available when your child begins college.

The chart assumes that you are getting a return of 5 percent on your savings. If you are able to earn more than that, your total savings will be higher. As the chart shows, if you start saving when your child is born, you will have 18 years of accumulated savings by the time your child enters college. You would only have to save or invest about $29 each month in an account earning 5 percent in order to have $10,000 at the end of 18 years. If you wait until your child is 12, you will have to set aside $119 a month. By waiting too long to begin saving, you may not be able to afford the amount of monthly savings needed to reach your goals.