One of your savings goals might be to help your children, grandchildren, or other students you know pay for a college education. With tuition costs continuing to increase at rates greater than inflation,1 it’s important to think strategically about college planning.
Be sure to max out your retirement accounts first, then prioritize and contribute to other savings goals, such as helping relatives pay for college.
If the cost of college continues to rise at its current rate, newborns will need in excess of $300,0001 in today's dollars to attend a four-year, in-state public university, and nearly twice that to attend a private school.
While this figure may seem high, remember that saving for college is like saving for retirement—by starting early, investing regularly, and contributing as much as you can, you give yourself the best chance of success.