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Education Planning

How to Save for a College Education

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Starting early is an important step you can take to ease the burden of meeting college costs. However, even if your child is approaching high school graduation, there are still some steps you can take to prepare for financing this important asset. To learn about the essential lessons for funding a child's education, read our Making the Grade brochure.

Step 1: How much will college cost?

College costs have historically exceeded the general rate of inflation. According to the College Board, the average cost of tuition, fees, on-campus housing and meals for four years at an in-state public university can exceed $54,000 per child (for 2007 to 2008). At a private college, that cost could be double or even triple.


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Step 2: How much do I have to save?

The Education Funding Analysis can project your future educational costs and analyze your savings requirements by using a comprehensive database of over 1,700 colleges and graduate schools.

  • Calculate how much you'll need to provide your children with the education they deserve.
  • Create a customized report that reflects your current investments and the projected education costs for your children.
  • Select a college that you want your children to attend and we'll use that college's reported tuition costs and estimated annual increases in your personal report.
  • After you review your analysis, an advisor can help you meet your goals through careful and professional planning.
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Step 3: What are my saving options?

There are several key factors to consider before you set up an account to fund a college education:

  • How much do you want to save?
  • What are the tax benefits of the account you have chosen?
  • Do you want to save in your name or your child's?

You can choose from many types of accounts to fund a child's education. In recent years, your choice has increased with accounts that are specifically designed for college savings:

  • Education Savings Accounts
  • 529 College Savings Plans

You can also save for college through several traditional accounts:

  • UGMA/UTMA Custodial Accounts
  • Trust Accounts
  • Standard Savings Accounts
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Step 4: How can I open an education funding account?

For more information contact your Financial Advisor or find the Branch Office nearest to you.

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Making the Grade: Essential Lessons for Funding a Child's Education

Our Making the Grade brochure can amplify some of the education funding concepts presented here. Specifically, this brochure can give you additional information on the following topics:

  • The Cost of a College Education
  • 529 College Savings Plans
  • Education Savings Accounts and Savings Bonds
  • Education Tax Credits and Deductions
  • Custodial Accounts
  • Trusts
  • Financial Aid Formulas
  • Investment Strategies
  • The Value of a College Education
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Our firm and its affiliates are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Please contact your advisor for more information about available products, services and research.

For more information, please contact your Financial Advisor.

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