Savings Strategies
Estimate the cost of postsecondary education.
The College Board estimates that by the year 2005, costs will be about $58,500 for a four-year education at a public university and $138,600 at a private college (residential, in-state student)
Establish a parental savings goal such as 50 percent of the estimated costs and devote a fixed percentage of your income to your children’s future education costs.
Student’s savings for college may be in the parents’ names which provides a significant benefit in needs analysis (under current formulas).
More on saving and investing later...