FEAR. That's the only way to describe the feeling that grips most parents when the subject of college bills comes up. The numbers are certainly daunting enough. If you plug 18 years into the applet below and choose "Private" under the type of college, you'll see that kids born today will need more than $320,000 by the time they pack their trunks and head off to school. When you're trying to build a retirement nest egg while taking care of young children with all kinds of needs, it can seem as if there's no hope of raising any more money — let alone more than a quarter of a million dollars. But there's no reason to panic. Yes, you do have to cut back on your spending, and yes, you do have to invest wisely. But it's not the impossible dream that many experts would have you believe. After all, millions of kids troop off to college each fall. Source: American Century Investments That said, we aren't going to lie to you: The most recent numbers on cost increases are ugly. Students at state colleges faced a staggering 10.5% jump in tuition and fees for the 2004-05 year. And the picture wasn't much rosier at private schools, where tuition climbed 6.0%. Needless to say, with costs soaring, it's essential that you invest aggressively when your children are young. That's where these courses and worksheets come in. They're designed to help you figure out how to save at a realistic level and how to maximize your investments. (Hint: Tax-free is the way to go.) We'll also give you a tutorial on the increasingly important world of financial aid. Bottom line? As frightening as it may be, coming up with a plan is a much better solution than pulling your hair out with worry and concluding there's nothing to be done. Throughout this course, we assume you've got a working knowledge of the investment world. So if you're a little rusty or just getting started, you may want to look at our Investing 101 department as a prerequisite. Before we get started, we also want to introduce you to these two golden rules: Put Your Retirement First This may seem like a selfish attitude, but there are some good reasons you should shelter much of your money in a retirement account rather than put it aside for college. First of all, when figuring financial-aid eligibility, many schools still don't consider money placed in IRS-sanctioned retirement-savings accounts as part of your overall assets. Second, you're going to need the money. You may find that if you rob your retirement account now to pay for your children's education, they'll have to turn around and support you when you hit 65 — a situation no parent relishes. In 2005, the IRS allows employees to contribute up to $14,000 annually to their 401(k)s ($18,000 if you will be age 50 or older at year-end). So if you're not currently maxing out your retirement-savings options, we strongly encourage you to bump up your contribution. That will provide a bit of a cushion if, when the time comes, you find you must cut back or stop contributing to your retirement account during the years your kids are actually attending college. (See our Retirement/401(k) department for more on how to plan for your golden years.) Don't Overlook Financial Aid Part of the reason many parents panic about college financing is that they assume they'll never get financial aid. But the truth is, far more families qualify than almost anybody realizes. Indeed, more than $122 billion in financial aid was available to families at all income levels during the 2003-04 school year, according to The College Board. Visit our Financial Aid section for specific advice on this topic, including how to increase your chances of winning an aid package. We'll also explain the ins and outs of student loans. The main thing to remember is that you can negotiate with a college-aid officer. Although the financial-aid process is very formulaic, individual circumstances can come into play. The only way to be sure you won't get an aid package is not to ask for one.