Saving for your children’s college: how much you need starting today

A university degree in the Dominican Republic can cost more than RD$1.5 million in tuition and materials over four or five years. The difference between that cost being a crisis or a plan comes down to a single variable: how long you have been saving.

The power of starting early

Compound interest does the heavy lifting. Saving RD$5,000 a month from the day your child is born can accumulate close to a million pesos in 18 years with moderate returns; starting when they are 15 requires almost double the monthly amount to reach the same place. Starting today is the cheapest decision.

Where to keep the money

• Savings accounts in the child’s name: liquid and safe for the early years.
• Certificates of deposit: higher rates in exchange for terms; renew them when they mature.
• Mutual funds: for long horizons, with potentially higher returns.

The practical rule

Open a specific account for the goal —separate from household finances— and set up an automatic monthly contribution. That “don’t touch it” is what makes the difference when the date arrives.

The key figure

RD$5,000 a month from birth. What turns your children’s college into a plan, not a scare.