Reuters Money

Back-to-school investing

Dan Greenshields is president of ShareBuilder. The opinions expressed here are his own.

Millions of children are getting ready to head back to school. Their parents have a long to-do list before them as well. My wife and I have had to purchase school supplies and new clothes, schedule haircuts, and make sure the kids have finished off their summer reading lists.

Unfortunately, this flurry of activities causes many parents to lose sight of another critical component of any back-to-school checklist: financial planning for our children’s future.

College is one of the best ways to increase a child’s chances for success. But it’s getting more expensive every year. In 2009, private school tuition rose 4.4 percent, to an average of $26,273, according to the College Board. While public school is less expensive, its cost is rising even faster – last year, the average tuition at a public, in-state university rose 6.5 percent, to $7,020.

Planning ahead for this expense will ensure that it doesn’t sneak up on you. Whether you live in Seattle or San Antonio – and whether you expect your child to go to a big state school or a tiny liberal arts college – such planning begins with an assessment of your present situation.

The first questions are easy: How old is your child? And have you started to save?

In the blink of an eye, this year’s fifth graders will be headed off to college. So the sooner you begin saving, the better.  I speak from experience.  My son is 11 and my daughter is 9. College and the costs – times two – that come with it are just around the corner.