College Planning:

Education Pays 2005 Update ... A Supplement to Education Pays 2004
The Benefits of Higher Education for Individuals and Society (Click here for the complete College Board 2005 report of the income differences caused by college education and other factors.)

In 2003, the typical full-time year-round worker in the United States with a four-year college degree earned $49,900, 62 percent more than the $30,800 earned by the typical full-time year-round worker with only a high school diploma.

Those with master’s degrees earned almost twice as much, and those with professional degrees earned over three times as much per year as high school graduates.

While the cost of college may be daunting for many families, the cost of skipping college will likely be much greater.  Obtaining a college education is becoming more expensive and more competitive.  However, the costs of NOT going to college are becoming must greater, as you can see from the chart above.

To encourage families to save more for higher education expenses, federal and state lawmakers have developed innovative college savings programs, such as 529 plans and the Coverdell Education Savings Account (formerly known as the Education IRA).

According to FinAid, parents should expect to pay at least half to two-thirds of their children's college costs through a combination of savings, current income, and loans. Gift aid from the government, the colleges and universities, and private scholarships accounts for only about a third of total college costs.

Accordingly, it is very important that parents start saving for their children's education as soon as possible, even as early as the day the child is born. Time is one of your most valuable assets. The sooner you start saving for college, the more time your money will have to grow.