Calculate The Approximate Cost Of Education

The cost of education more and more expensive. This is what makes us need to prepare the cost of education from now on. It’s not all expensive tuition fees. Variations of the school makes the cost is not the same standard. So naturally if parents who can afford to pay school fees at the X but can not afford to pay school fees at the Y because more expensive. However, please note that the school does not mean that X will be equal cheapness in the years ahead. This caused the cost of education would be increased from year to year.

Let me give a simple example: let’s say your child is now 3 years old. The question is easy, if the current high school basic fee is USD 1,000 and the average age of someone in high school was when at the age of 15 years, Will you be paying the same amount as your child will enter high school some 12 years from now?

It must be different, since these Tuition Fee will certainly be much more expensive.

HOW TO CALCULATE

Then, how you can calculate and estimate the cost of your child’s future education if education costs are always rising from year to year? Since you do not know what percentage of the amount of increase each year, right?

Right. We can not predict with certainty how many of our kids education costs later. All we can do is to use certain assumptions, and hope that assumption is not missed. For example, we can use the assumption that education costs each year will always increase by 10 percent every year. Average.

Thus, if such high school basic fee today is USD 1,000 , next year could be expected that the basic fee is going to USD 1,100. Where did that number come? Easy: USD 1,000 + (10% x USD 1,000)

Actually, in addition to the above, you can also use the formula: USD 1,000 X 1.1.

Why 1.1? Where it can be? Oh, that’s just simple math. 1.1 it is 10% above 100%. Thus, it is 1.1 decimal form for you to more quickly in doing multiplication of estimates the Education Fees.

But if you want to use the assumption of Education Fee increases 20% per year, then you can use the decimal 1.2. If the assumption of education costs are rising 30% per year, use the decimal 1.3. And so on.

Now, back to the example 10% increase in one year, so if this year’s high school basic fee is USD 1,000, then the next year that number is expected to become: USD 1,000 x 1.1 = USD 1,100.

That’s for next year. If for the next two years how? You can perform the above multiplication by repeated twice, like this: USD 1,000 x 1.1 x 1.1

If for the next five years how?

Repeated multiplication five times, like this: USD 1,000 x 1.1 X 1.1 X 1.1 X 1.1 X 1.1. If for 12 years? Repeat until twelve times. And so on.

Indeed, the name of Education Cost estimates often can not be calculated in a way that simple. But it did clear estimate is better than none at all. Given an estimate as you learn the above, then you can more easily in preparation. Like you’re traveling, you know exactly where you’re headed.

So, if you want to prepare for the education fund for your child, the most important thing is to do a calculation of how the estimated cost of your child’s future education. Thus, it would be easier for you to set the strategy to be ready when the time comes.

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