Until you understand how fast college costs are spiraling out of control, it is tough to do an adequate job of planning for college. While the broad “cost of living” has increased or “inflated” at a historical average of 2% annually, college costs tend to increase 5-6% every year. That means that college costs are rising three times as fast as life’s other costs, and likely three times as fast as your paycheck.
Understanding proper investment selection as well as using accounts that are meant to combat inflation, such as Prepaid Tuition plans, are crucial to making sure a college education stays within reasonable reach.
