September is traditionally the first full month of students being back at school. As you survey your family and reflect on how fortunate you really are, you may find your mind wandering into the future, dreaming about each child’s next steps and contemplating how some of your dreams for them will be paid for.

Inevitably you will allow yourself to think about what your child or grandchild will do after high school. Your focus may start on what type of school they may attend and what they may choose to study, which are far more pleasant topics than how to cover the cost. Out of curiosity, you may grab your phone, search Google for a favorite college and look up what it will cost to attend. If you’ve not done this recently, you may want to make sure you are sitting down.

As a chart of popular regional institutions shows, the current published costs of attendance can be intimidating. The picture becomes more serious when you consider the amount you would need to plan for if you have a child or grandchild born in 2024, who would attend a school for four years starting in 2042.

Unfortunately for your wallet, aid from the government, colleges and private scholarships often only cover a fraction of all college expenses. Starting to save early can lead to substantial investments by the time your child or grandchild begins school, even if you start with small amounts. Here’s how to get started saving:

• Save money methodically via payroll deduction or via another systematic investment method. (Your financial advisor should be able to help you with this.)

• Consult your financial advisor and collaborate to develop a plan with milestones for achieving your child/grandchild’s educational goal. As they get old enough, have them periodically accompany you when meeting with your financial advisor to allow them to learn and to become engaged in the process.

• When they are old enough to get a job, have your child contribute half of their earnings into their college savings fund.

• Save and invest windfalls such as inheritances, income tax refunds or bonuses.

• Increase the amount you save by 6.8% each year to keep up with the current college tuition inflation rate.

• Ask relatives to contribute to the savings account in lieu of gifts.

• Keep your savings and investment plans a priority.

• Make sure to not carry credit card debt and to maintain an emergency fund; this will help keep you from having to “raid” college savings to cover other expenses.

Strategies for investing for college are many and cannot be adequately covered in this single article. Contact us to discuss ways your money can work as hard as you do.