Top 5 College Savings Mistakes - Top Mistakes Families Make When Saving for College

College can be one of the most expensive purchases a family makes, and when several children head to college within a few years of each other the costs can be staggering.

These are some of the most common mistakes made by families when preparing (or neglecting to prepare) for the financial burden of college.

1. Not Saving at All

The biggest mistake is to not make any provision for a child's college education. Regardless of income, saving should begin when a child is young and should progress at a steady pace. While the price of a four year education at some schools tops 0,000, even a few thousand dollars a year of savings can make a huge difference for most families.

2. Not Learning About Government-Sponsored, Tax-Advantaged Savings Accounts

529 plans and similar college savings plans allow families to receive tax benefits (such as tax-free earnings and deductions) while saving for college. Using one of these plans can mean thousands of dollars in additional college funds at no extra cost.

3. Misjudging a Student's Educational Options and Wants

It's tough to know, when a student is young, at which college he or she will eventually enroll. Yet it's never too early to begin thinking about particular programs and how much they'll cost. Countless times a family has planned for a student to attend a local college and live at home, while the student anticipates going to a college that's farther away and/or much more expensive.

4. Underestimating the Cost of College

Even if you have a particular college in mind, it's easy to forget about all of the costs associated with a college education. When saving for college it's not enough to look up a school's tuition and save enough for four years. Tuition will likely go up, possibly by a lot. You also have to plan to pay for room, board, travel, books, living expenses, etc.

5. Forgetting About Financial Resources That Can Help Pay for College

The news about saving for college isn't all doom and gloom. Despite costs that can be staggering, there are also a number of resources that can help you pay for college, including loans, grants, and scholarship. The sooner you begin researching these options, the more likely you'll be prepared to understand your options when those acceptance letters finally begin to roll in.