When you are the parent of a preschooler, there is a lot to think about. Is he eating right? Does she get enough sleep? Is he ready to start preschool? And while all of these questions (and answers) are essential, there is one other important matter that parents of preschoolers should be asking themselves and acting on, yet many don't: Should we be saving for college?

The answer is a resounding "yes," according to Michael Fitzgerald, the Iowa State Treasurer and the chair of the College Savings Plan Network, a non-profit resource for families who need information about making decisions about saving money for college.

In this informative Q&A, Fitzgerald shares why saving for college should be in the forefront of the mind of parents of young children, tips on how to save and how much college might cost 15 years from now.

For people who are chasing after a 3, 4 or 5 year old all day, saving for college is probably the furthest thing from their minds. When should people start to save?
It can be difficult to start thinking about college when you’re busy packing up lunchboxes and sending the kids off to preschool, but The College Savings Plans Network (CSPN) is a big believer in starting savings as early as possible. That way you can afford to save smaller amounts and there will still be plenty of time for your money to grow.

How much is college going to cost 12 or 15 years from now?
College costs are on the rise, and that pattern isn’t going to slow down anytime soon. In the past 10 years alone, the costs for college tuition and fees have gone up nearly 51%! CSPN has a college cost calculator which is a great tool for parents and relatives to estimate future college costs.

Based on our calculations, if college tuition inflation is 7% each year, the cost of tuition, fees, room and board for a current 4 year old at a four-year, public college or university will be more than $186,000 when he/she is ready to attend college; at a private institution the cost will be exceed $436,000.
What are the different types of accounts for saving for college? Is one better than another?
There are over 100 plans to choose from, but there are two types of 529 plans: prepaid tuition plans and savings plans. Prepaid tuition plans (sometimes called guaranteed savings plans) are currently available in 11 states and allow for the pre-purchase of tuition based on today's rates and then paid out at the future cost when the beneficiary is in college.
Savings plans are different in that your account earnings are based upon the market performance of the underlying investments, which typically consist of mutual funds. Savings plans may only be administered by states. 49 states and Washington, D.C. offer a savings plan. Most 529 savings plans offer a variety of age-based investment options where the underlying investments become more conservative as the beneficiary gets closer to college-age. They also offer risk-based investment options where the underlying investments remain in the same fund or combination of funds regardless of the age of the beneficiary. In addition, many savings plans offer a FDIC/NCUA insured, money market or guaranteed option designed to protect an investor's principal while providing for some investment growth, while others offer investments in certificates of deposit. Withdrawals from 529 plans for qualified education expenses are free from federal income tax, plus many states also offer state tax-deferred growth, tax-free withdrawals for qualified expenses and a state income tax deduction or credit based on annual contributions.
It is very rare that anyone can just out and out pay for college. Most families will likely qualify for some form of financial aid. Instead of saving, doesn't it just make sense to borrow when the time comes?
Rising college costs have caused a spike in our nation’s student loan-debt, which is increasing in both the percentage of families that have student-loan debt and the amount of money that they’ve had to borrow. Many parents think that when they apply for financial aid that their child’s education will be covered predominantly by grants and scholarships that do not have to be repaid. However, about 60% of federal financial aid is in the form of loans that not only have to be repaid, but often have to be repaid with interest.
College savings plans can help offset the need for loans and keep families out of debt. For example, a family that saves $200 a month over 18 years at a 6.8 percent annual return will save $34,433, while borrowing the same amount at a 6.8 percent interest and repaying it over a 10-year term will cost them $396 per month in interest.