Tuition sticker shock. Do you have an extra $214 to $460 in your monthly budget for the next 17 years? Along with a 9% annual investment return, that's what it will take to save for your child's college education. Assuming college tuition will rise at an annual rate of 5%, you can expect the average four-year college bill to soar to roughly $103,000 at public colleges and $222,000 at private colleges by the year 2018. But before these projections cause you to break out in a cold sweat, here are several tips that you can follow to make the most of your savings strategy.

Tip #1 -- Start saving early. Never underestimate the value of starting your savings program early. Beginning on your child's first birthday, $100 invested monthly with a 9% return will grow to $48,251 in 17 years. That same $100 monthly investment, started at age five, will grow to only $29,660 by the time your child reaches age 18.

Consequently, a delay of four years ends up costing you $18,591. Therefore, any amount that you can put aside now, no matter how small, reaps the benefit of time to earn interest and grow. You can start small and gradually increase the savings amount as your income grows. To help you regularly put money aside each month, automatic savings plans are a good option.

Many companies enable employees to have a small amount deducted from each paycheck and invested in bond or mutual funds. Alternatively, you can direct automatic withdrawals from your bank account to be invested on a regular basis.

Tip #2 -- Invest in the stock market. Historically, stock returns have outpaced both bond returns and traditional savings accounts interest over a long-term period. These higher returns do come with a price as market volatility makes stocks riskier short-term investments. Nonetheless, these risks should smooth out over the years before your child reaches college age.
If you don't have the time or expertise to build your own portfolio, a stock mutual fund is the easiest way to invest in stocks. Stock mutual funds provide a professionally managed, diversified portfolio. In addition, mutual fund shares are convenient to buy and sell, allowing easy access to your money in the event of an emergency.

Tip #3 -- Don't sacrifice retirement savings. Retirement savings deserve a top priority in your family budget, even over college savings goals. Many financial experts recommend that you approach saving for college like saving for any other large purchase.
Make sure you fund your retirement strategy first, and then address college savings goals. To bridge any gaps in your child's college fund, there are many additional sources to finance a college education, including scholarships, financial aid, and loans.

Tip #4 -- Maximize your 401(k) contributions. Many companies match an employee's 401(k) contribution as long as it meets a designated minimum threshold. Make sure you contribute enough to your plan to ensure you receive this money. In the event of an emergency withdrawal of funds, the employer's match invested in your account should exceed any early withdrawal penalties.

Tip #5 -- Pay-off credit card debt. Credit card interest rates are high, and interest payments add up quickly. By paying off your credit card balances now and eliminating this interest payment, you effectively earn 15% or more on your money.

Tip #6 -- Consider your child's age. Investing in traditional savings accounts, certificates of deposit, or bond funds while your child is young can jeopardize your overall savings plan. The low returns of these safer investments generally will not generate the growth that you need in a college portfolio. For children younger than 14, growth stocks and mutual funds provide the greatest investment return over time.

However, when your child reaches age 14, consider switching some of your stock portfolio into lower risk vehicles. This strategy protects you from any negative stock market swings just before the tuition check is due.

Tip #7 -- Beware of late maturing bonds. Bond investments offer a guaranteed return. This guarantee, however, won't be there if you have to sell your bond investments early in order to make a tuition payment. Carefully consider bond maturity dates in order to avoid maturity after the tuition bill due date.

Tip # 8 -- Avoid life insurance policies and tax-deferred annuities. Finally, life insurance policies carry high premiums and cancellation penalties. Similarly, agent commissions and early withdrawal penalties burden tax deferred annuities. These expenses and penalties reduce your investment earnings, making them an expensive savings choice.

By Carla Mooney
Pregnancy & Baby.com

Let's make it clear right away, my wife and I started a family late so we could "plan" for children. Ooops!

We made lots of mistakes in our youth, both personally and financially, but recovered quite well and have, very thankfully, done well for ourselves.

Through the years as we were gathering a bit of momentum we came to a mutual understanding that two kids were ideal for us considering our hectic lifestyle. I won't say that our lives are any more chaotic that anyone else's, but both of our families frequently comment on how much we have going on at any one time. In this day and age I believe this to be more than the norm than the exception.

My first daughter was born just over five years ago with the help of a very inspired, helpful and encouraging infertility doctor. Our third infertility physician, I should mention. We named her Grace because, in my wife's own words - "Grace is something I have never had!" She is a super kid! Laid back with a great personality and when she grows up she wants to be a rock star/princess - who doesn't?

Our second daughter was born three years later with a full head of hair of which she most definitely did not inherit from her father. Sydney is a handful, but she is as funny as she is trouble. We also had to use infertility drugs and insemination to conceive her, but we had our family as planned, so all was well.

Imagine my surprise after I receieved a phone call last Friday from my wife telling me she thought she was pregnant!! No drugs, no plan - no possible way! Well it was possible and is now a reality - she is with child and we are both now just grasping the reality of that. She is due in December - almost a year to the date after my 40th birthday. My knees are still weak - my head is still racing, but you know what - it's all going to work out...

Next business venture - car seats for golf carts!