College
Is College Worth It Financially? A Data-Driven Answer
College graduates earn $1.2M+ more over a lifetime -- but the ROI varies wildly by major, school, and debt load. Here's the data to help you decide.
Parent vs Retirement Trade-off
If I fund $50K of my kid's college, here's how it impacts my retirement. Side-by-side retirement projection with and without college funding.
Parent vs Retirement Trade-off
If you help pay for college, what happens to your retirement? Let's see the real trade-off.
$
$5,000$250,000
$
$0$5,000
$
$0$2,000,000
401(k), IRA, and other retirement accounts combined
That $50,000 would cost you $68,398 in retirement savings -- noticeable, but manageable
Here's what I'd tell a friend
The true cost isn't just $50,000 -- it's the $157,941 that money would have grown to by retirement (the opportunity cost). You'd need to either save an extra $131/month starting now, or work about 2 extra years to make up the difference. Consider splitting the cost: you fund half, your child handles the rest through loans, work, and scholarships.
Retirement without college funding
$866,274
Retirement after college funding
$797,876
Impact on retirement
-$68,398 (7.9%)
Monthly retirement income (without)
$2,888/mo
Based on the 4% safe withdrawal rule
Monthly retirement income (with)
$2,660/mo
Monthly income reduction
-$228/mo
True opportunity cost
$157,941
What $50,000 would grow to if invested until retirement
Extra savings to offset
$131/mo
Additional monthly savings needed starting now to make up the difference
Or work extra
2 years
Additional working years needed to close the gap
The Money Friend
That $50,000 would cost you $68,398 in retirement savings -- noticeable, but manageable
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