College Savings

With the rising price of college, savings are more important than ever. According to the College Board, the average cost during the 2005-2006 school year at a four-year public university was $5,491, with private colleges weighing in at a whopping $21,235, and two-year schools offering a substantial savings at $2,191 . A tuition savings calculator can give you an idea what you're up against, factoring in potential inflation rates.

You're never too young to start saving for college. If your parents didn't start a college savings account for you when you were younger, talk to them about your options. While many local banks and credit unions encourage young people to create a savings account, an adult must approve the transaction.

A part-time job after school and during the summer can help you build your savings. It takes commitment and an understanding you will need to make sacrifices, though, especially when it's so easy to spend your paycheck on more immediate and enjoyable purchases like fast food and clothes. When opening a new account, consider saying no to checking and debit options to remove much of the temptation to spend your money quickly.

You can also build up your account by saving any money you receive as gifts,and even asking for money for your college savings in lieu of gifts. From birthdays and holidays to graduation presents, this can be a good way to add to your investments.

Most students will start out with a basic savings account, but once you've saved a significant amount, consider moving your money to an account providing a higher return on your investment, like a certificate of deposit, mutual fund or portfolio of stocks.

Even if you or your parents have built up a substantial college fund for your future education, don't forget to fill out a FAFSA application and research scholarships to learn about your financial aid options.

529 Plans are available in every state, and they allow investors to save money especially for college costs. Their name comes from Section 529 of the Internal Revenue Code which provides tax breaks to those investing in the plans. The College Savings Plan Network provides a 529 locator, so you can research your state's offerings.

Essentially, prepaid tuition plans allow you to lock in the current cost of tuition for future college attendance. With the price of college increasing every year, the savings can be substantial, especially if you purchase a plan early in your child's life. Prepaid tuition plans are available in 19 states. The 529 locator can also help you determine if your state provides prepaid tuition plans.

One of the more unconventional ways to save for college is through Upromise. Upromise partners with other companies, so you can earn a few cents towards your child's college education each time you buy selected grocery products or shop at specific stores. One trip to Wal-Mart isn't going to pay the way through school, let alone buy a textbook, but if you make a committed effort to using the Upromise card over the years, you can build up a substantial amount. You can also get extended family members involved in saving for you if they are not saving toward children of their own.

Sure, it's fun to buy toys for kids, but will your 2-year-old nephew really miss getting one less teddy bear this Christmas? Instead, make an investment in a child's future by contributing to her college savings account or purchasing a savings bond for future use.

• Free Federal Money for College
• Things to Take to College Dorm
• Ways to Decorate a College Dorm Room

• List of Ivy League Schools
• College Girls Flashing
• Scholarships for Future Teachers
• Drunk College Girls
• College Party

• College Loan
• College Tuition
• College Funding
• Unclaimed Scholarships
• Money for College