How much should I save for College?

My sister-in-law is day(s) away from having her first baby and it made me wonder how much college will cost when her newborn goes off to school.  I know it is years away, but it is never to early to start planning.  Fidelity recently released a study that suggested what percentage of income parents should put away to pay for their childrens education.  The findings showed that families should be saving around $250/mo to provide for a public education and $450/mo to provide for a private education.  These figures assume you start saving at birth!

Already have kids?  The numbers would be higher.  However, don’t get discouraged if you are a little behind the curve.  A lot of college planning comes down to goals.  Is it realistic that you are going to pay for 100% of your kid’s education?  If not, help them get student loans and if you find yourself in a position to help them in the future, perhaps payback some of the loans.

For the Fidelity article:  http://finance.yahoo.com/college-education/article/110478/what-you-should-save-for-college-each-month?mod=edu-collegeprep

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