| Course | GF590 Personal Financial Planning |
|---|---|
| Unit | Unit 7 |
| Paper type | Education funding calculation |
| Length | About 850 words, 6 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | MS in Finance |
| Updated | October 2026 |
Free sample paper for GF590 Unit 7
Two Children, Two Runways: A Unit 7 Education Funding Calculation for a Two-Income Household
[Student Name]
Purdue University Global
GF590: Personal Financial Planning
Unit 7 Education Funding Calculation
[Instructor Name]
[Date]
The household, its goals, balances and assumptions are composite and illustrative; the sources cited are real.
Assumptions, Stated Once
1. Current cost. $27,500 a year for tuition, fees, room and board at the state's flagship public university. The national average for in-state public four-year institutions was about $24,920 in 2024-25, and the flagship runs above it (Ma & Pender, 2024).
2. College inflation. 5 percent a year, above general inflation, reflecting the long-run pattern of published prices.
3. Returns. 6 percent a year before enrollment, in an age-based 529 portfolio, and 4 percent during college, as the portfolio shifts to bonds and cash.
4. Target. The parents intend to cover 75 percent of the cost; the children are expected to contribute the rest through work, aid or modest borrowing.
5. Existing savings. The 529 balances are $18,600 for the older child and $7,900 for the younger, with deposits of $150 and $100 a month.
The Older Child, Seven Years Out
Cost. The parents' 75 percent share of the first year will cost $29,021 when the older child enrolls in seven years. Rising 5 percent a year, the four years cost $125,086 in total.
Sum needed at enrollment. Because the account keeps earning 4 percent while tuition is paid, the family needs less than the four-year total on the first day. Discounting each year's bill at 4 percent gives $117,771 needed at enrollment.
Resources. The existing $18,600 grows to about $27,968 by enrollment. Current deposits of $150 a month add about $15,611.
Gap. That leaves $74,192 to find, or about $713 a month more for seven years.
The Younger Child, Eleven Years Out
Cost. The first year's share will cost $35,276, and four years $152,043.
Sum needed at enrollment. $143,151.
Resources. The existing $7,900 grows to about $14,997, and $100 a month adds about $18,632.
Gap. $109,522, or about $588 a month more for eleven years.
The younger child's gap is larger in dollars but cheaper per month, because each dollar saved for her has four more years to compound; that difference is why the two children are calculated separately rather than as one family goal.
The Funding Table
Full funding of the 75 percent target needs $863 a month for the older child and $688 for the younger, $1,551 in total, against $250 now. The household's cash flow statement records a surplus of $981, but the account balances show only about $188 a month actually being saved. Full funding is not feasible from current cash flow.
A Feasible Plan
The recommendation is $900 a month starting now, $520 for the older child and $380 for the younger. The household's auto loan payment of $594 ends in about 33 months; from then, that payment is redirected to the 529 accounts, split evenly.
Under this plan, the older child's account reaches about $99,600 at enrollment, about 63 percent of the full four-year cost, or about 85 percent of the parents' 75 percent target. The younger child's account reaches about $124,000, about 65 percent of full cost.
The plan therefore funds about 64 percent of full cost for each child, rather than the 75 percent the parents hoped for. The remaining gap is about $57,000 for the older child and $67,000 for the younger measured at each enrollment date, which the children could cover through a mix of summer work, merit aid and federal student loans.
Why a 529 Plan
Earnings in a 529 plan grow free of federal tax and are withdrawn tax free for qualified education expenses (Internal Revenue Service, 2025). Many states also give a deduction for contributions to their own plan. Parent-owned 529 accounts are counted at a low rate in federal aid formulas. Dynarski's analysis of the education saving incentives concluded that their value goes chiefly to well-off households, a group that includes this couple; the advantage remains real for them all the same (Dynarski, 2004).
Why the Split Favors the Older Child
The first $900 is not divided evenly. The older child has seven years left and the larger share of her goal still unfunded relative to her runway, so each month of delay costs her account more. Giving her $520 and the younger child $380 brings both accounts to nearly the same share of full cost by their enrollment dates, which treats the children fairly in outcome rather than in deposits. When the auto payment is freed, it is split evenly because by then the older child's remaining runway is short and the younger child's account benefits more from each added dollar. The couple can revisit the split every year as balances and returns become known.
Risks to the Plan
College inflation could exceed 5 percent. Returns could fall short, especially near enrollment if markets fall. Financial aid rules could change. Each risk would lower the share funded, so the plan should be reviewed every year and deposits raised if the household's income rises.
References
Dynarski, S. (2004). Who benefits from the education saving incentives? Income, educational expectations and the value of the 529 and Coverdell. National Tax Journal, 57(2), 359-383. https://doi.org/10.17310/ntj.2004.2S.01
Internal Revenue Service. (2025). Tax benefits for education (Publication 970). https://www.irs.gov/publications/p970
Ma, J., & Pender, M. (2024). Trends in college pricing and student aid 2024. College Board.
Reading the GF 590 Unit 7 instructions
In GF590's seventh unit you calculate how much a household must save for each child's education and whether it can. State every assumption once with a source: current cost, college inflation, returns before and during enrollment, the share the parents intend to cover and existing balances. Then price each child separately using the same steps: cost inflated to each enrollment year, the sum needed at enrollment discounted at the in-college return, growth of the existing balance, growth of current deposits, and the monthly amount that closes the gap. Combine the children in a funding table and compare the total with the household's real surplus. If full funding is not feasible, recommend an amount that is, show what share it funds, and explain how the remainder could be covered. Cite cost data and tax rules in APA 7.
How this GF590 Unit 7 example is built
Five numbered assumptions open the calculation, with current cost compared with the College Board average through Ma and Pender. The older child is priced in four steps: a first-year share of $29,021, $117,771 needed at enrollment, $43,579 from existing savings and deposits, and $713 a month more. The younger child follows with a $109,522 gap and $588 a month more. The highlighted sentence explains why the children are calculated separately. A funding table sets $1,551 against a true surplus near $188. The feasible plan gives $900 now and adds the $594 auto payment after about 33 months, funding about 63 and 65 percent of full cost. A section explains the uneven split, and the 529 rules are cited from the IRS and Dynarski. Risks close the paper.
Reading the GF590 Unit 7 grading rubric
Graders of GF590 education calculations award early points for assumptions stated once with sources, so every figure can be rechecked. The calculation for each child earns the largest share when each step is shown, especially discounting the four-year cost back to enrollment at the lower in-college return. Separate treatment of children with different horizons shows understanding of compounding. Comparing the required saving with the household's actual surplus, not the recorded one, earns credit for realism. Instructors in the MS in Finance program value a feasible recommendation that states plainly what share of cost it funds and how the rest might be met. Ma and Pender, the IRS publication and Dynarski, cited in APA 7, round out the expected support for the calculation.
GF590 Unit 7 help: mistakes that cost points
Many GF590 Unit 7 calculations inflate the cost but forget that money keeps earning during college, which overstates the sum needed at enrollment. Others treat both children as one goal, hiding the advantage of the longer horizon. Existing balances are counted at today's value instead of grown to enrollment. Current deposits are ignored. The required saving is compared with a surplus that does not really exist, or no feasibility test is done at all. Tax benefits are described without a source or year. If your case involves private college, graduate school or a single child, keep the sequence: sourced assumptions, the same steps for each child, a funding table, a test against the real surplus, a feasible amount with its funded share and the risks that could lower it.
Get a GF590 Unit 7 example written to your instructions
Share the children's ages, the cost basis and target your GF590 Unit 7 case sets, existing account balances and the rubric. The calculation you receive prices each enrollment year, credits balances and deposits, computes the monthly gap per child, and tests the total against your household's cash flow. First sample free; 24-48h is typical. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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GF590 Unit 7 questions, answered
Why discount at a lower rate during college?
Because accounts usually shift toward bonds and cash as enrollment approaches, and money being spent within four years cannot bear much market risk. The sample uses 6 percent before enrollment and 4 percent during. Your case may supply one rate for both; if so, follow it, and add a sentence noting what a lower in-college return would change.
Should the calculation mention tax benefits?
Briefly, and dated to whichever year your case sets. Earnings in a 529 account used for qualified expenses are generally free of federal tax, and many states offer a deduction for contributions, with amounts and limits that vary. The sample brackets any figure it cites for that reason and never lets a tax benefit substitute for the funding arithmetic.
What if the household cannot fund the goal?
Say so and show what it can fund. The sample finds 1,551 a month needed and a feasible 900, then reports the result as about 64 percent of full cost for each child. The remaining share becomes a decision for the parents, perhaps student contributions, aid or a lower-cost school, rather than a gap hidden by an optimistic return.
Where can I find a free GF590 Unit 7 sample paper?
This page carries a full GF590 Unit 7 education funding calculation for two children, with assumptions, the sum needed at each enrollment, monthly gaps, a feasible plan funding about 64 percent and APA 7 references.
Why does the older child get more of the first $900?
Her seven-year runway is shorter, so each month of delay costs her account more. Giving her $520 and the younger child $380 brings both accounts to a similar share of full cost by their enrollment dates.