METHOD AND SYSTEM FOR FINANCING EXPECTED FUTURE EDUCATIONAL EXPENSES

摘要

The invention is a method and system for financing expected future educational expenses (10). The method includes the basic steps of determining current educational expenses; reviewing past changes in educational expenses; calculating future educational expenses based on current educational expenses, past changes in educational expenses, and assumptions on annual increase rates of educational expenses; establishing a target for future total investment payout based on calculated total future educational expenses and assumptions on expected investment yields; and deriving present investment amount needed to provide future educational expenses. Payment of the investment amounts are collected for investment of future payment of educational expenses. Additional insurance policies are purchased (90) to provide cushion money to cover investment short fall and guarantee the payment for future education expenses. The system that implements the present invention method utilizes a computer network such as the Internet (50) for establishing and maintaining a web site (40) which provides on-line enrollment of the service and direct payment links as well as continued educational counseling.