Saving for Children's College

It is always best to start saving for your children’s college education as early as possible. Long ago, in a previous article, we discussed the magic of compound interest. The simple Rule of 72 suggests that money doubles every seven years at approximately 10 percent. Those parents who begin saving at their child’s birth, as opposed to those who start when the child is age seven, potentially have one full doubling period advantage. Considering that tuition and related expenses are growing at an inflationary rate which is currently more than double the Consumer Price Index (CPI), we recommend you start early, maximize your risk-adjusted expected return and carefully consider taking advantage of available tax incentive plans. Learn more.