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The Hispanic American Financial Experience - Prudential

Funding your children's college education

While most parents dream of sending their children to the college of their choosing, the prohibitive and increasing cost of a college education forces many to settle for the most affordable schools or to go the community-college route. In fact, tuition goes up by an average of about 8% per year,* which means that it will cost a family with a child born today three times more to matriculate than it does a current graduate.

It can be difficult to balance short- and long-term financial goals, but an abundance of guidance, information, individualized savings plans, and financial aid is available to help you accommodate the soaring cost of tuition and fund your children's dream of a quality education. Keep in the mind that you should also be contributing to your retirement plan now—not putting off this important task in favor of funding an education. You can always borrow to pay for a child's education, but there are fewer ways to borrow for your retirement.

Talk to a financial professional to learn about popular educational saving options such as:

  • Bonds
  • College savings accounts
  • Coverdell Education Savings Accounts
  • IRAs
  • 529 plans

This will provide you with a broad-based sense of the types of of savings or investment vehicles available to you and their relative risks, returns, and limitations.

* "On average, tuition tends to increase about 8% per year. An 8% college inflation rate means that the cost of college doubles every nine years. For a baby born today, this means that college costs will be more than three times current rates when the child matriculates in college." (

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Prudential Financial, its affiliates, and their financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances.