Cliff Morgan, founder of College Planning Partners offers some advice.
FREE seminar offering FREE SCHOLARSHIPS
July 31, 7PM
DePaul University, O'Hare Campus
8770 W. Bryn Mawr Ave., Rm #205
Workshop link: http://www.uscollegeplanning.com/workshops
Call (312) 267-1130 for more information.
Cliff Morgan's Top 4 Tips:
Step #1: Determine how much you're going to owe.
The best way to estimate how much college is going to cost is to use a college cost projector calculator. There is a great one available to you for free here: www.finaid.org/calculators/costprojector.phtml
Step #2: Determine how much you can comfortably set aside each month.
Here is a link to a good budget sheet you can use: www.financialplan.about.com/library/nbudget.htm
Step #3: Compare available college savings plans.
Now that you know how much you need and how much you're going to save on a consistent basis, it's time to make a decision on where you want to put it. Some options: 529 plans, Money market and bank savings accounts, Treasury Bills, Bonds including Tax-Free Muni's and Bond Funds, Cash Value Life Insurance, Choose your college savings plan wisely.
Step #4: Monitor your college savings plan on regularly scheduled basis.
This one is pretty clear-cut. A quarterly, semi-annual, or annual look at how your college savings plan is performing is a good idea. Consistently asking yourself, "am I making progress with this account?" And, "do I need to make adjustments to it?" Will keep you on track.