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$2k rule for college savings

June 1st, 2017 at 05:41 am

There was an article I read recently that saving $2000/year per year your child is will allow you save half the cost of a public university cost in state. $2k rule

The article says if you save $2000/year for a child that you will have $36k after 18 years. Pretty obvious statement. The article says most people don't save for college because they have no guidelines and think it unachievable. But if people followed this guideline it would seem more reasonable goal.

I figure anything you save like retirement will help. I just checked and DK1 has $19,976 and is 7 years old. We haven't contributed this year so we've contributed $12k. And DK2 is 4 and we haven't contributed this year so $8k contributions but has $13,024. Granted the markets have been good to the kids. But I'm just investing in VTI and being boring.

I will contribute after we buy the house each another $2k this year. I'm thinking maybe by 18 each kid could have $50k? Definitely about 50% of the cost of public school tuition. Also assuming we don't save any more.

I'll keep everyone posted as we go along. Since we really did start when they were born and are saving $2k into a ESA it'll be a good litmus.

4 Responses to “$2k rule for college savings”

  1. creditcardfree Says:

    Nice! We didn't start at birth, but I've been amazed at the power just $2K saved each year has made. I don't regret what we saved for one minute. Hope you reach that $50K target.

  2. ceejay74 Says:

    Very nice! I've been neglecting the kids' savings the past few years, other than putting a third of their allowance in there. But that's only about $2 a week, so that's not gonna get them anywhere.

  3. ThriftoRama Says:

    We save $3000 per year per child, up from $2000 a year, and we started at birth. College costs are scary,and I don't want the kids to struggle like I did to get a degree (had to drop out four times due to lack of money, despite working 2 -3 jobs at a time).

    It keeps me up at night wondering how we'll pay for it. I kept hoping for some sort of high education financing reform, but given the current state of politics, that isn't gonna happen!

  4. rob62521 Says:

    You are so smart to start saving when they were born.

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