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## Personal finance

### Course: Personal finance>Unit 2

Lesson 2: Perspectives for families

# Math behind saving for college

Calculation of what to save to pay for a child's college tuition. Created by Sal Khan.

## Want to join the conversation?

• why would you do 1.03 instead of just .03 that makes no sense
• If you just multiply by 0.03, you would get the cost of the yearly increase, not the total cost of the next year's tuition. For example, if you take the \$45,000 that is mentioned in the video, the cost of tuition next year will be \$45,000 * 1.03 = \$46,350. Multiplying by just 0.03, the answer would be \$45,000 * 0.03 = \$1,350 which is the difference between the cost of next year's tuition versus this year's tuition (\$46,350 - \$45,000).
• Why do so many people disregard community college as an option? My parents didn't save anything for my tuition so I kind of had to go, but I made much closer friendships while in community college and better yet, I was able to pay for my OWN tuition out of pocket without it being much of a burden! It certainly cuts the costs of a bachelor's degree if I'm only going to a university for two years :)
• I totally agree with you. I am going to be graduating HS soon and will definitely be going to community college. Even if you are planning on going to school for 4 yrs or higher (like me) it just makes more sense. For the first 2 yrs in college EVERYONE has to take the same BASIC courses. So why pay so much more money to take these course at a university when you could pay so much less at a community college. I honestly think that so many kids just don't think about it or want to get away from their parents. I mean you could still go to a community college, not live with your parents, and not accumulate so many loans and debt. Like I said, it just makes more sense.
• Current transcript segment: Let's say you've just had a child, wot wold you do?
• i would throw it out the window...0 stress solution
• So much maths
• Is it right (for the sake of putting this in question form) that when he's doing his math for university tuition, it could almost be like he's showing a formula for making the rich rich, and the poor poor. And then at the same time have an excuse to blame the poor for the problems that are being created by them?
• The point of the video is to help parents that want to and have the resources to create a college fund for their children know how much they should save. It's not some formula making the rich rich and the poor poor, it's just helping parents know how much money to save.
• this is exceedingly confusing
• I agree I had to watch this video twice to understand
(1 vote)
• this whole thing confused me, math is really not my thing