Assume that average after-tax returns are 5% annually. That's generous in this environment.
In 18 years, that $5,000 would be worth about $12,033.
$5,000 x (1.05)^18 = $12,033.
It costs about $30,000 A YEAR to send a kid to a private four-year college.
Education expenses are growing at a 5% clip (faster than published inflation).
So to send a kid to school, you'll need 4 x $30,000 = $120,000 in today's dollars to finance a college education.
But this is growing at a 5% clip a year, so, in 18 years, it will cost
$120,000 x (1.05)^18 = $288,794 to send a kid to college in 18 years.
Let me get this straight: Her Thigness wants to make sure kids have about $12,000 in beer money to attend school that will cost $289,000 18 years from now?
Sound like pandering to me.
Oh, the numbers get even worse with saving up for a house.
Is Shrillary saying people can't save up for their own educations and housing?
|
Threaded Mode