FEAR. That's the only way to describe the feeling that grips most parents when the subject of college tuition 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 $270,000 by the time they pack their trunks for four years at one of the Ivies. 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. Sources: The College Board, American Century Investments That said, we aren't going to lie to you: The most recent numbers on cost increases aren't pretty. After several years of somewhat moderate gains, students at state colleges faced a staggering 7.7% jump in tuition for the 2001-02 year. And the picture wasn't much rosier at private schools, where tuition climbed 5.5%. While those numbers are higher than we've seen in the past four years, you should know that costs will most likely continue to increase at an average annual rate of roughly 5%. This means that to keep up with tuition inflation, 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 investment returns given the appropriate amount of risk. It's a much better solution than pulling your hair out with worry and concluding there's nothing to be done. Further, a new generation of college-savings vehicles is gaining steam, with state-sponsored 529 plans at the helm of this movement. 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, most 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 2002, the IRS allows all employees to contribute up 100% of their gross salary to a corporate 401(k), or $11,000 annually (whichever is less). So if you're not currently maxing out your retirement-savings options, we strongly encourage you to bump up you contribution as soon as possible until your kids reach college age. 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. You'll also shelter that much more of your assets and income from the financial-aid office. Don't Overlook Financial Aid Part of the reason many people 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. Families with incomes and assets in the six figures often receive aid or get a government-subsidized loan for their children. More than $74 billion in financial aid was available to families at all income levels during the 2000-01 school year, according to The College Board. And about half of all students receive at least a partial award. The College Planning section of GuerrillaFunk.com has specific advice on financial aid, including how to increase your chances of winning an aid package. It also explains 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.