Since the 1980s, the price of attending college from tuition alone has increased more than 130% when adjusted for inflation. Other indirect costs of attending college have increased, too. Preparing financially for college, given the upward trend in college prices requires a firm commitment to starting early.

If college costs continue to increase at this rate, and there is substantial and creditable evidence to support this rate as a minimum, by the time a child born in 2007 is ready to go to college, college itself will likely cost 260% as much as back in the 80s. As a result, preparation and budgeting are key ingredients. Keep in mind, that while there is a wide range in college costs, and in general, private four-year colleges have exceeded the general trend in college attendance costs.

So, what will college cost down the road? Using current figures and speculative statistical analysis, the average four year public university will cost the family budget $4880 per year for tuition alone whereas the average private school will sap your finances by $22,260 annually for tuition alone. In addition, there are ever increasing trends in the costs of room and board, student fees, parking fees, technology fees, university fees, insurance fees, etc. during which all-the-while, inflation occurs.

Given that we can speculate on the costs on a parent’s budget of a four year degree in twenty years, we can also do a bit of basic math and come up with the average four year degree running somewhere around $21,000 for a public university and quite a bit more for a private school. That’s a pretty penny to work into any family budget.

To best prepare for this it is imperative that parents start saving now. There are a variety of ways to help pay for college, and thankfully the amount of financial aid has been keeping step fairly well with college’s rising costs, but that may change at any time. Many states now offer state programs to save money in specialized tax-exempt college savings plans. Additionally, IRAs may be able to tap retirement funds to help bear the brunt of the college cost without early withdrawal penalties. Savings accounts also accrue interest and help budget money in preparation for college.

Regardless of the strategy chosen to help address the cost of college, it’s important to prepare financially. The best suited financial programs for a parent to budget toward college are similar to North Carolina’s 529 plan. The 529 is tax-exempt when the money is used to pay for qualified higher educational costs. 529 account deposits are not taxed when money is put in, offer a high degree of flexibility allowing parents to send their students virtually anywhere, and affordable.

How much will I need to save to pay for college? Depending on when you start, and what method you use to apply your financial savings towards higher education the amount will wildly vary. If you start at birth, and you wanted to send your child to a public university you could assume the cost is around $21,000. That’s a good working figure. Using it we derive that a parent needs to save $1167 annually, $97.22 monthly, and only around $3.20 a day. That’s the cost of a cup of coffee at starbucks.

If you are resolved to send your kids to college, it won’t take much to put back the money required to cover tuition. That doesn’t mean if you have the money for college you should forsake scholarships and grant money. But, instead, this figure is intended to help you approximate how much you should budget out of your finances towards college. If your kids get a full ride, great.

You can take the money out of an account like a 529 and pay the penalty and go to an exotic country for half a month. Or you could pay off a thirty year mortgage early. Regardless, preparation and careful budgeting could make the difference in your sons and daughters ability to attend college at a later date. And did you know, the average four year degree recipient on average earns twice as much as someone with only a high school education? Over the course of a lifetime the benefits of a college education can easily amount to as much as $1,000,000 or even more.

Given this, isn’t it time to start budgeting for college savings?