With the cost of tuition, fees and other college expenses on the rise, planning ahead and saving early is the key to making the dream of higher education a reality. However, figuring out exactly how much to save can feel overwhelming for many families. Sound familiar? Let's explore the current costs of college based on recent research and take a look at helpful ways to start saving today.
How Much Do You Really Need to Save for College?
As you can imagine, college costs vary greatly depending on the type of institution, location, the type and length of the degree program and whether or not the student is full-time or part-time and living on-campus or commuting. Generally speaking, private colleges have a higher tuition “sticker price" than public schools.
To give families a clearer picture of what to expect, College Board compared the published tuition prices and fees for full-time undergraduate students in the 2023-2024 school year and found the following:
With this in mind, experts typically recommend saving 10-15% of your family's total income each year for one student's college education. It's also important to note that college tuition often increases over time due to inflation, plus there are other college costs to account for such as books, transportation, electronics and school supplies.
Once you have a general idea of how much you'll need to pay for college, what's the best way to start saving? Check out these tips and tools to help you save for college the smart way:
Start with the ⅓ Rule of College SavingsSaving for a big goal, like the dream of higher education, takes a lot of patience and discipline. One way to approach saving for college is by following the “⅓ rule," which involves spreading the cost of a significant expense (think four years of projected college costs) among three funding sources. With this approach, one-third of the total amount you need will come from your past income (savings), one-third from your current income and one-third from loans (usually student loans).Keep in mind that there's no one-size-fits-all solution to saving. The ⅓ rule might not work for you, and that's okay! Meeting with a Financial Coach can help you create a college savings plan that fits your needs and goals.Save Better with Great RatesWhen it comes to saving for college and other major goals, you want to find a saving option that offers great rates with no gimmicks. In Ohio, many families choose to save in a savings account as well as a tax-free 529 Plan, which can be used for a child's education after high school.Wright-Patt Credit Union® (WPCU®) has a range of smart savings products available to help you earn dividends and reach your savings goals. For longer-term savings goals, consider a Share Certificate, which offers a fixed rate and flexible terms to fit your needs.Fill Educational Funding GapsEven after savings, scholarships, financial aid and loans have been applied, many students still have outstanding costs for tuition, activity or sports fees, books, housing and supplies. Here's where private student loans can come in. WPCU's private student loans are designed to help families responsibly fill these educational funding gaps and borrow smarter so students can get through college the smart way.Our Student Choice Loans come with flexible terms and convenient repayment options — and we may even be able to offer you a lower interest rate to help you keep more money in your pocket in the long run.
Start with the ⅓ Rule of College Savings
Saving for a big goal, like the dream of higher education, takes a lot of patience and discipline. One way to approach saving for college is by following the “⅓ rule," which involves spreading the cost of a significant expense (think four years of projected college costs) among three funding sources. With this approach, one-third of the total amount you need will come from your past income (savings), one-third from your current income and one-third from loans (usually student loans).
Keep in mind that there's no one-size-fits-all solution to saving. The ⅓ rule might not work for you, and that's okay! Meeting with a Financial Coach can help you create a college savings plan that fits your needs and goals.
Save Better with Great Rates
When it comes to saving for college and other major goals, you want to find a saving option that offers great rates with no gimmicks. In Ohio, many families choose to save in a savings account as well as a tax-free 529 Plan, which can be used for a child's education after high school.
Wright-Patt Credit Union® (WPCU®) has a range of smart savings products available to help you earn dividends and reach your savings goals. For longer-term savings goals, consider a Share Certificate, which offers a fixed rate and flexible terms to fit your needs.
Fill Educational Funding Gaps
Even after savings, scholarships, financial aid and loans have been applied, many students still have outstanding costs for tuition, activity or sports fees, books, housing and supplies. Here's where private student loans can come in. WPCU's private student loans are designed to help families responsibly fill these educational funding gaps and borrow smarter so students can get through college the smart way.
Our Student Choice Loans come with flexible terms and convenient repayment options — and we may even be able to offer you a lower interest rate to help you keep more money in your pocket in the long run.
Looking for More College Funding Tips, Tools and Resources?
Visit WPCU's Student Lending Center to explore free resources, financial wellness tools and upcoming webinars covering topics from college planning to navigating student loan repayment.
Do you have questions about completing your FAFSA, interpreting your award letter or deciphering financial aid lingo? Schedule an appointment with our College Counselor and receive a personalized, one-on-one consultation to discuss your college funding and repayment questions.