With the cost of a university education increasing rapidly, Pan Caribbean Financial Services, in collaboration with the Hillel Foundation, on Tuesday gave parents ideas on different strategies and investment vehicles to maximise college savings.

Speaking at the seminar for the parents of students from Hillel, dubbed 'College Planning 101', Sabrina Cooper, assistant vice-president for sales and investment services at Pan Caribbean, said many parents do not have a well-defined college-planning strategy.

She told the gathering at Hillel's auditorium that it was important to start planning early.

Cooper suggested that parents could send their children to a community college for two years and the other two years at a college in the United States.

College Planning 101

Parents don't plan far enough in advance for what events are to come

The key here is not to wait until your child is just about to leave for college. Planning may very well be one of the best financial decisions you ever make and will enable you to pay for college and still be able to save for retirement and other financial priorities.

Parents don't learn the rules to the college funding game

Many parents assume they can just 'wing it' when the first college bill comes their way. You need to be proactive when it comes to paying for college. You need to be informed and develop a strategic plan specifically for your family that takes into account admission, financial aid and financial strategies.

Parents with higher incomes or assets assume they won't qualify for any type of financial aid

First you must understand there are two different types of financial aid offered by colleges and universities. The first type, need-based aid, takes the parents' and student's income and assets into account. The second type is merit aid, which is based on academic achievements and has nothing to do with financial need. There are usually a number of loans, grants and scholarships available to help offset college costs.

Parents assume they are doing their child a favour by not making them responsible for any of their college expenses

The years your child spends in college are a time of transition and a bridge between being a teenager and becoming a young adult. Parents can be very valuable in helping to guide their child into being a responsible adult. The years spent attending college can be used to help your child develop healthy financial habits that will follow him or her into the adult years. At a minimum, we recommend a student be responsible for earning their sponge money.

Source: Pan Caribbean