How Much Do You Really Need for College?
Funding college for your kids is a major goal for many families, but the numbers can feel overwhelming—especially if you’re also pursuing financial independence. This series will walk you, step by step, through how to estimate, save, and integrate college costs into your FIRE plan.
Note:The purpose of this series is a step by step tutorial. Interactive components exist on each page to illustrate each concept. For the full college calculation integrated with your FI journey use our full plan builder.
Step 1: What is the Sticker Price?
Ignore the scary headlines. Most families pay far less than the sticker price, thanks to in-state tuition, scholarships, and financial aid.
Here's what college actually costs in today's dollars (we'll address inflation and future costs in Part 2):
| Path | Tuition & Fees | Room & Board | 4-Year Total |
|---|---|---|---|
| In-state public | $12,000/year | $13,000/year | $100,000 |
| Private (with aid) | $27,000/year | $13,000/year | $160,000 |
| Community college start | $2,000/year (2yr CC) $12,000/year (2yr transfer) | $8,000/year (2yr CC) $13,000/year (2yr transfer) | $58,000 |
*Actual costs vary by state and institution. These are typical estimates for planning purposes in today's dollars.
Step 2: How Much Will Scholarships and Aid Cover?
Most families do not pay the “sticker price.” Merit scholarships, need-based aid, and grants can dramatically reduce your out-of-pocket cost. Use each college’s net price calculator for a realistic estimate.
Step 3: How Much Do You Want to Contribute?
Decide what portion of the cost you want to cover. Will you pay 100%, split it with your child, or target a specific dollar amount? Many FIRE families choose to cover 50–75% and let their kids contribute through work, scholarships, or modest loans.
Estimate Your College Savings Target
College Savings Calculator
Your College Savings Breakdown
Try these common scenarios:
Note: Financial aid estimates are rough approximations. Use each college's net price calculator for more accurate projections.
Next in This Series
The goal of this series is to walk you through how to think about saving for college step by step.
Coming Up
- Part 2: How Inflation Impacts College Costs. How much do I need in the future?
- Part 3: How do I save?
- Part 4: Where to Save? 529 Plans and the tax advantages
- Part 5: Which 529 Plan is Best?
- Part 6: Balancing College & Financial Independence