UNDATED (NBC) -- Don’t know how much to save for your child's college education?
Fidelity Investments is hoping its new 2K rule-of-thumb helps you do the math.
Fidelity Investments is trying to clarify college savings with a new 2K rule-of-thumb; it recommends multiplying your child's age by $2,000 to stay on track to cover half the average cost of a four-year, in-state public university. So, if you have a seven year old child, you would need $14,000, or $2,000 times seven, to be "reasonable confident" that you can afford roughly half the cost.
By the age of 18, your $36,000 fund could reduce the cost of school by 50 percent with the rest coming from financial aid, student loans and family earnings.