Planning For College, Part 1 - The Most Common Error Parents Make (Not Quite What You Think it Is)

How will you pay for your children's college education? The price tag has been rising year after year, making it more and more challenging to come up with the funds. And the kinds of planning mistakes most people make in the process don't help. Read on for the most common mistake -- which is only partially what you think it is.

It may be obvious but it's so important I'm going to say it anyway: The most common error parents make is not planning far enough ahead. Most parents don't start saving early enough and thereby lose the value of compounding. The unfortunate result? Inadequate assets to pay for college related costs.

But that's just the beginning. The failure to plan extends to the kinds of things parents can do to actually lower the costs of college. It makes no difference whether you're wealthy or poor. There are many ways that will help save you thousands of dollars, maybe even tens of thousands -- but you must plan ahead to be able to take advantage of them.

Start by determining the most efficient way to pay for your children's higher education. By the time your children are in high school, you should already be familiarizing yourself with the college funding process. This will help you develop a comprehensive and multi-year plan that will help you minimize the amount of your own money you'll have to spend.

Such a plan will take into account college admission rules, various ways to develop proper cash flow, and tax strategies. It will also include various types of financial aid assistance you can pursue.

For best results, you may want to consider getting some expert help. An experienced college planning consultant may be able to save your family literally tens of thousands of dollars in college expenses. Unfortunately, most families are not even aware that this type of planning exists.

Above all, do not delay planning for college. A good time to start is once your child reaches his freshman year in high school. Of course, the process of actually saving for college should have started many years before that time.