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.