Expensive as it seems now though, the picture is only expected to get scarier, according to a new report from Michael Conrath and his team at JP Morgan Funds.
This chart shows that future college costs are expected to inflate 5% per year, taking annual private college costs (for tuition, fees, room and board for a year) from $39,518 today to $90,576 in 2030 (in 2012 dollars).
For you parents, the younger your child is, the more expensive college is likely going to be going forward. A child that's currently 18 years old will likely pay $76,979 for a four-year public college education. But for a child on the way, that cost will surge to $185,259.
Much has been made about surging medical care costs. And most people see gas prices increasing right before their eyes. But none of this compares to tuition. This chart shows that since 1983, tuition costs have risen faster than any other major household expense.
JP Morgan advisors are telling clients that putting money into a savings account won't do. In order to better prepare themselves, parents are being advised to take some risk and invest in stocks and bonds.
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