Plotting a Course:
Providing funds for a child’s education is one of the most important financial commitments most parents will make. Unfortunately, it is also an increasingly large financial commitment. For most parents, developing a plan for meeting education expenses is almost mandatory. While such a plan may involve various elements such as gathering tuition information, selecting investments, evaluating lump sum or annual funding, the development of a plan begins with establishing goals. Analyzing your planning from multiple viewpoints will provide a better understanding of your current situation and help identify what further action you may need to take.

Funding a Dream:
As a parent or grandparent, it’s likely that you, too, have dreams for your child/grandchild. Perhaps you envision him or her carving out a successful career, making some lasting contribution to society, or simply leading a comfortable life. Your child’s ability to achieve financial and other goals may very well hinge on his or her earning power. You can give your child a boost toward maximizing his or her earning power through higher education. However, the cost of providing a higher education is soaring. If tuition continues its present upward spiral, parents of children born this year can expect to spend between $70,000 and $200,000 for an undergraduate degree, depending on whether their child opts for a public or private college. That’s the bad news. Now for the good news: By starting early and planning well, you can fund most, if not all, of your child’s education. Even if you wish you had started earlier, you can still take steps now to ensure your child can afford to go to college.

CCM Keys
Consider your answers to these questions:

• How many children do you plan to send to college?
• When do you expect your child or children to begin college?
• Do you want to plan for a public or private education?
• Would you prefer to fund your child’s or children’s education in one lump sum, or in regular payments?
• If regular payments are your choice, would you prefer to make monthly, quarterly or annual payments?

Know Your Options
Although many families hope that scholarships or grants will help them meet the cost of college, unless you earn $25,000 or less, chances are any financial aid you may receive will most likely be in the form of loans. The College Board report, “Trends in Financial Aid 1999,” found that nearly 60% of the approximately $60 billion given in financial aid in 1998 was loans. This is up from 40% in the 1980s.