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Savings Growth Projector

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The greatest asset parents have available when preparing for the costs of their children's education is time. It is never too soon to start saving. The sooner you begin, the more your money will grow due to the wonders of compound interest. This Savings Growth Projector illustrates how regular contributions to an interest-bearing bank account or investment fund will grow due to compound interest. Interest is compounded at the same rate as the contribution frequency.

We recommend that parents set up a savings plan (in the parents' name) on the date of birth, and make regular monthly contributions of at least $50 per month (preferably $100 to $200 or more per month). A good goal is to save at least half the projected costs of the child's college education. (If you save just $25 per week in an account that earns 5% interest, at the end of 17 years you will have $34,839.45, representing $12,739.45 in interest earnings.)

If you're trying to reach specific savings goals, you may wish to use the Savings Plan Designer to calculate the amount of your regular savings plan contribution.


Current Savings:
Years to Enrollment:
Interest Rate on Savings:
Contribution Frequency:
Amount Saved Per Period:
 

 
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