Most parents and grandparents realize how important it is to save for college. But many put off saving-or don't save at all-because planning a workable program seems complicated and time consuming. And that is the greatest hindrance to success: not getting started. "Getting started as soon as possible, no matter what the level, is the key to success," according to Charles R. Schwab, Chairman of the Charles Schwab Corporation. "As a rule of thumb, for every five years you put off investing, you may need to double your monthly investing amount to achieve the same goal."

How much will you need for a child's college education? According to the College Board, right now a year at a public college costs an average of $9,649 for tuition, books, fees, room and board, and personal expenses. At a private college the price is about $20,361. Costs have been rising at 5 percent to 6 percent each year and will probably continue to rise.

There are three essential steps to preparing for these costs:

Define savings goals. First, have a clearly defined goal. How much do you hope to save by the time your child is 18? Your goal may be lower than the actual cost of college, since you may want to anticipate other sources of financing such as loans and scholarships. But having a target is essential for effective planning. For example, a $100 monthly investment earning 8 percent return for 18 years can grow to $46,918 when today's newborn reaches college age.

Choose the right investment. How you allocate your investments among different investment categories (stocks, bonds, and cash) will depend on your attitude toward risk and how much time you have to invest. Over time, stocks have outperformed all other types of investments, though they have greater risks and price fluctuations than other investments. If you have many years to invest, you may be able to afford to take on more risk and assume a high level of investment in stocks and stock mutual funds. With fewer years ahead, you may want to adopt a more conservative strategy with fewer stocks, or no stocks at all. One of the biggest mistakes many people make is being overly conservative when their child is young.

Choose the right kind of account. For example, if you're opening an investment, should it be an account held in your name or a custodial account that becomes your child's when they become an adult? With an account in your name, the assets remain legally yours and your child may be eligible for more need-based financial aid. In a custodial account, depending on a minor's age, you may get tax benefits on income earned in the account but it may limit the amount of financial aid available to your child.

Here are some tips that may help:

If your child is newborn to age eight: Try not to be overly concerned if the amount you can invest isn't enough to reach your total goal; getting started is the most important thing. To help your money grow look for a savings vehicle with as wide a variety of investment choices as possible, low minimum investment amounts, and no fees.

If your child is eight to 13: Talk with your child about the need to save for college and help the child develop his or her own savings account for this purpose. You should also consider moving funds into more conservative investments (for example, shifting toward a more balanced portfolio of stocks, bonds, and fixed income securities).

If your child is older than 13: Consider shifting out of stock-oriented investments and into a more conservative investment strategy with fewer stocks, or no stocks at all. Investigate home equity loans-the interest on these loans may be tax deductible, making them a cost-effective source for college funding. Start doing research into additional sources of funding. Though it may seem early, the more you know about loans, grants and scholarships, the better prepared you'll be.

A new source of information on college savings is the Charles Schwab College Saver Program, a step-by-step system designed to help consumers determine the cost of college education, develop an investment plan and identify appropriate investments. The program is available through its toll free telephone service at 1-800-435-4000, online website (www.schwab.com) or any Schwab branch. (NAPSI)