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Here’s how much you need to put in a 529 savings plan per month to pay cash for every Ivy League school

The Ivy League is home to some of the most prestigious universities in the world.

The list of schools is impressive: Harvard, Yale, Brown, Princeton, Cornell, Dartmouth, University of Pennsylvania and Columbia.

CNBC ran the numbers, and we can tell you how much money you would need to save to send your child to each Ivy League university.

First, some assumptions. 

For saving, we assume you use a 529 plan and start saving when your child is born. We also estimate that your investments earn a 4% return a year. We do not account for any fees or expenses you may face. 

For future school costs, we assume tuition will continue to increase around 3% a year

Here’s a case study. 

It will cost students more than $75,000 to attend Harvard University for the 2020-21 school year. Using our cost assumptions, the price in 18 years will grow to nearly $130,000 per year or over $540,000 for a four-year degree. That means you would need to save more than $1,700 per month until your newborn turns 18 to pay cash for your child’s tuition in 2038.

Check out this video to learn how much you will need to save to pay for your child’s Ivy League education. 

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