Financial expert shares tips for building a college savings fund for your children

The median household income in the United States is $83,730 before taxes, while the average American family spends $34,019 a year on college.

Those figures underscore the importance of starting early when saving for higher education, according to financial experts.

Jeanna Padovano, who has two daughters ages 9 and 11, said she is already setting money aside for their future education expenses.

"I was paying off my school loans until I was in my late 30s so hopefully help my girls more than I was prepared for," Padovano said.

Financial experts say that approach can make a significant difference as college costs continue to rise.

"The cost of college is crazy, so it is absolutely essential they can start saving even if it's just an amount that seems really insignificant to you," said Matt Schulz, chief consumer finance analyst at LendingTree.

Schulz is also the author of "Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life."

One savings vehicle he recommends is a 529 plan.

"A 529 to be a really great tool. It's a like the old saying of planting a tree. The best time to start was 20 years ago. The second best time is Wednesday. It's absolutely the case when it comes to saving for college," Schulz said.

A 529 plan is a savings account designed for educational expenses.

The accounts are not subject to federal income tax and, in many cases, are not subject to state tax. Funds can be used for college tuition, K-12 education, trade school expenses and student loan repayments.

Families can open a 529 account at any time and do not need to immediately name a beneficiary.

A recent Fidelity Investments study found that 529 account holders have saved nearly twice as much for college as those who do not have such accounts. The study also found that more than eight in 10 parents believe the value of a college degree is worth the cost.

Experts say saving for education is only part of the equation. Teaching children about money and financial decision-making early can help prepare them for future financial responsibilities.

"I recommend that when your kids is turning 18, that you get them maybe a secured credit card for you makes them maybe an authorized user on one of your credit card accounts if you have good enough credit to where that will help them. But exposing them to these different financial tools and also, you know, checking accounts, high yield savings accounts, that sort of thing, exposing your kid to these sorts of financial instruments is really important to do at a young age," Schulz said.

As summer comes to an end, the annual reminder is that long-term goals such as saving for college may be closer than they seem, making early planning an important consideration for many families.

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