One common goal of most people is to provide their children and grandchildren with a college education. A good college education frequently provides the student with additional opportunities and income. Unfortunately, that diploma comes at quite a bit of cost.
According to the College Board, for 2008/2009, the average annual cost of a four-year college is nearly $18,300 for a public college and $37,400 for a private college.1 This is inclusive of almost all costs including tuition and fees, room and board, books and supplies, transportation and personal expenses. These costs have been increasing about 7% each year.
Planning for this cost and saving towards it as soon as possible increases the likelihood you will have plenty to take care of this goal. Proper early planning involves choosing an amount to set aside on a systematic basis into the right kind of account for the educational savings.
As your child or grandchild approaches college, planning will include a review of the assets and cash flow available to fund education, financial aid filings and applying for scholarships.
1The College Board. Trends in College Pricing. Washington, DC. 2008.
