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Saturday, August 30, 2008 |
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Inflation: How Much Will It Cost Later?
Inflation has averaged about 3% for the past several decades. If you are
planning to buy insurance to cover costs that your family will incur down the
road, consider how much those costs will increase over the next ten or twenty
years.
If, for example, the average tuition today for your state's top public
university is $5,000 per year, it may easily reach $9,000 or more by the time
children born in 2000 head off to college. Whatever the expense - cars,
housing, care for an elderly relative - be sure to keep in mind the impact of
regular cost increases.
| Today's Cost |
10 Year Cost* |
20 Year Cost* |
| $1,000 |
$1,344 |
$1,806 |
| $5,000 |
$6,720 |
$9,031 |
| $10,000 |
$13,439 |
$18,061 |
| $15,000 |
$20,159 |
$27,092 |
* Assuming 3% annual inflation
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