How much you need to save for your kids’ college education depends on when you start saving, how much of the total you are willing to pay, and where your child ends up going to college. Fidelity has a rule of thumb that you can follow. It assumes that, if college costs continue to grow at 2.5% above inflation and your child starts college at 18, choosing to graduate in a four-year period, then you should aim to save approximately $2,000 multiplied by your child’s current age. The formula also assumes that you will be paying approximately 50% of college costs from savings. Remember, though, every family has a different savings goal and a plan to get there. One way to save funds from when your child is very young is investing in a 529 savings plan.