Research shows that college graduates experience greater earnings, less unemployment, and more self-confidence throughout their lives than do high school graduates. On average people with a college degree earn 81% more than those with only a high school diploma. Over a lifetime, the gap in earnings potential between a high school graduate and a college graduate can exceed more than $1,000,000.

In recent years, it's becoming easier for families to save for college. From new state savings programs to federal tax incentives and education savings accounts, there are more choices to set aside money for college. College expenses vary based on the type of school and expenses being covered. Common costs range from $8,000 (Public) to $21,000 (Private) for Tuition, Fees, Room & Board. Inflation costs have averaged 4-5% for both Public and Private Universities.

To determine your child's college needs, the following factors should be considered:

• The current age of the child--How much planning time is available?
• Type of education desired--Will children go to public or private schools?
• The current costs of these expenses.
• Types of savings vehicles--consider the tax benefits of the various ways to save.
• The effects of inflation--How high will future costs be?

A focus on planning for college can help maximize resources. Education planning is a three step process:

• Determine the age at which the child will enter college.
• Project future expenses based on the target costs in today's dollars.
• Compare future costs with funding sources and take steps to save regularly, if needed.