INDIANAPOLIS (WISH) – Experts are urging parents to start saving for their children’s college earlier than ever before.
According to the Institute for College Access and Success, the class of 2014 graduated with an average of nearly $29,000 of debt.
The increase in cost for college is prompting parents to start saving early. So how should you save?
Experts said to put away 20 percent of your earned income and to earmark 10 percent for retirement. They said the other 10 percent should be saved for future goals such as buying a house, having kids and sending them to college.
Experts suggested if you need a place to put your money you should put it in state sponsored investment accounts, where your money increases tax free. Not only does your money increase tax free, but qualified withdraws are not taxed by the feds.
CNN contributed to this report.