DIY College Savings

American Demographics

A recent poll by shows that only 17% ofAmerican parents have consulted with afinancial planner about saving for theirchildren's college education. For morethan a third of these parents, a plain-vanillasavings account is the investmentof choice, although 17% said they areaccumulating savings bonds and 12%have money in mutual funds. Just over10% are saving through state-sponsoredSection 529 accounts, while another10% are relying on real estate investmentsto pay for college. Several surveyrespondents already have children incollege, which accounts for the 13%who say that grants and loans are helpingpay tuition and the 11% who mentionfederal financial aid programs.According to the College Board, theaverage annual cost of a college educationis now about $20,100 at a privateschool and $5100 at a public school.