Let's be frank.... when it's costing as much to fill our tanks for a month than the cost of our mortgage, the notion of sparing a few bucks to save for your six-year-old's college fund seems a bit ridiculous. But, at the risk of sounding a bit cliché, a penny saved today can mean an education for tomorrow. After all, it's one of the greatest gift you can give your child.

I interviewed Laura High, a certified financial consultant with Smith Barney. She had some great answers to some common questions:

Q: When it comes to college savings, where should a family begin?

A: First decide what you wish to provide for your child. Not every family chooses to provide for 100% of a child's college expenses.

Q: How do parents determine how much to save?

A: This is a great question and the reason why it is often helpful to utilize a professional planner in establishing your program. We can estimate the total expected cost of a specific college or for average cost universities (public & private) across the US. Then, we "back into" how much you need to save now to fully meet that goal.

Q: What is the biggest stumbling block you hear form your clients about saving for college?

A: It is so overwhelming! How can any little bit I can save now even make a dent in these expected college costs? By adding the quantitative, measurable component and breaking it down month by month, parents can see the light at the end of the tunnel. And as the children grow, they can be made aware of the parent's expectations and possibly, add to their college accounts themselves!

Laura also provided some great insights into the type of saving vehicle parents can use. These include:

o Savings or investment account in parents name
o Education Savings Accounts
o Uniform Transfer to Minor Account (no limit on contributions; gifts tot the account are irrevocable; child owns the assets & will gain full control at the age of majority.)
o Prepaid Tuition accounts
o 529 Plans (Laura's personal favorite)

Laura ended our interview with this final thought:

"Useful financial planning begins with a discussion of values and desires for your family. Begin by talking about what you would like to provide for your children in the way of higher education. You will be surprised at how much you can accomplish through consistency and perseverance." Valuable lessons to pass along to your future college grad!

For more information, you can contact Laura using the information below:

Laura High
CERTIFIED FINANCIAL PLANNER TM
Smith Barney

Website: www.fa.smithbarney.com/high_high

Number for Consumers to call: 817-882-4916

Email: laura.high@smithbarney.com

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