One problem with a phrase like “rule of thumb” is that when you type it, it’s in your mind for long enough to seem extra weird. Setting that aside, a recent New York Times article has some good suggestions for simplifying the college savings process. Among them:
- Multiply your child’s age by $2,000 to have a sense of how much you should have saved for college by now. For example, if your child is 12, you should have $24,000 saved.
- Saving earlier is easier than saving later.
- Many families end up using the 1/3-1/3-1/3 approach to paying for college: 1/3 is paid from savings, 1/3 from income/cash flow, and 1/3 from borrowing.
Lots more is in the article, here.
