Education planning has become even more crucial to many families over the past few years, mainly because the cost of a good education has grown dramatically faster than the overall rate of inflation. Some experts predict that, if your child is born today, you may need more than a quarter million dollars in savings to pay for tuition and living expenses at a quality college or university. The right education planning can put the burden of paying for your child’s education on your portfolio without forcing you to take on extra jobs or go deep into debt.College savings plans are a key element to education planning. Not long ago, many states established “529 plans.” These savings portfolios operate similarly to a retirement plan, but the proceeds can be used for education expenses, like tuition and books with recent legislation making earnings tax free.

Because 529 plans offer a range of savings options, including stocks, bonds and money market funds, your education planning professional can help you determine the right blend of investments to maximize your college fund. If your child is very young, your education planning process can emphasize higher-risk, long term savings options. Even if your child is due to start college in the next few years, a visit with an education planning expert can identify low-risk savings alternatives that still generate a return on investment or the proper tax break for the money paid.