The old college try

Personal Finance | Tuition prices keep soaring, but 529 plans can help parents saving for higher education | David Bahnsen

Besides retirement planning, few financial issues generate as much attention as saving for college. Parents today are often in a better financial position than their parents were a generation ago, and want to bless their children with as much assistance as possible. Additionally, college expenses have sky-rocketed, and many feel a tremendous burden related to its affordability. The dramatic inflation rate associated with college tuition (averaging between 7 percent and 10 percent annually) creates anxiety as to what the expense will be by the time their now young children are college age.

The first thing that has to be done is to determine your goal. Some parents of greater means may want to make sure that they have provided enough college funds for all of their children to have all of their tuition, room, and board covered, for all the years they are in school. Other parents may choose to have their kids go through the same financial aid and loan process that they went through, and not cover all of their tuition for them. Your values and goals have to start the process.