Respondents to a new nationwide survey conducted by Money Management International think that parents should save more to help their children afford college. In fact, nearly half (47%) said that parents should be saving more. Echoing this thinking, nearly as many respondents (43%) think that parents should establish and fund a 529 plan. Rounding out the top three, many respondents (41%) think that students should be responsible for shouldering more of the financial burden.

The focus on saving seems to mirror the changes in national financial perceptions and habits. According to a New York Times article in June 2009: “The personal saving rate, which dipped below zero during the housingboom as Americans tapped home equity loans and other easy lines of credit, rose to 6.9 percent in May, the Commerce Department reported. That was its highest point since December 1993.”

Other less popular ideas for funding an education included dipping into regular savings (19%), taking out a personal loan or use credit cards (17%), taking a second job (12%), taking a second mortgage or a home equity loan (8%), borrowing against retirement savings (6%), dipping into retirement savings (5%), and borrowing against insurance policies (4%). (Note: respondents could select more than one option.)

Several respondents made very specific suggestions which are worth noting:

-”Encourage academic excellence early.”
-”Help when possible, but teach children about financial responsibility at an early
age and encourage them to save, too.”
-”Instead of saving for college, use that college money to pay off their mortgage
sooner. Then use what they would be paying for their mortgage and help their
children with college.”
-”My children join military for schooling purposes. I have poor credit and no
savings live paycheck to paycheck.”
-”Teach their kids they are NOT going to get everything handed to them, as I was
taught; I paid for my college, and so did one of my kids that just graduated. All on
their own.”
-”Teach them to be independent at an early age and help them do for themselves.”
-”Think government should pay for schooling cause without workers there will be
no taxes and no one to pay them in the future.”

For more about college and credit, check out:

Economy calls for a change in college plans
Earn an “A” in personal finance this semester
New & old ways to pay for an education
Money management for the first time adult

Most kids have some idea of what they want to be when the grow-up. Unfortunately, landing a position as a pirate or princess isn’t always easy. On the other hand, one thing that we all get to be when we grow up—whether we like it or not—is a consumer. While being a consumer isn’t as glamorous as being a Superhero, it is important and does require a lot of training.

Learning to be a good consumer is important as it offers a basis for financial success; but many American students complete 12 years of schooling in which little or no attention is paid to economics. As a result, many consumers find themselves on their own to learn from the school of hard knocks. In fact, Americans currently owe more than $2.5 trillion in non-mortgage debt and hold little in the way of savings.

Fortunately, there are four very basic tips for wise money management:

1. Live beneath your means. Learn the difference between needs and wants; experts agree that one key to happiness to be happy with what you already have.

2. Expect the unexpected. No one plans to lose a job or suffer from illness. Being prepared for life’s setbacks will give you peace of mind and help you to survive financially if the worst should happen.

3. Plan for tomorrow. Make it a habit to pay yourself first. The earlier you start the better—as they say, the eighth wonder of the world is compound interest.

4. Keep credit under control. The average household owes more than $8,000 in credit card debt. Smart consumers use credit as a tool of convenience, rather than an extension of their income.

Finally, know when to seek help.  After all, even the Batman couldn’t do his job without his trusty sidekick.

There is a lot of debate about how much money you should have in your emergency account and what exactly constitutes an emergency. In general, experts recommend keeping three to six months’ worth of living expenses in an accessible account. I agree; however, how do you know if you should aim high or low in such a huge range?

The answer may depend on your risk factors. For example, people who live and work in markets that have high financial risk, like Nevada, should probably err on the side of caution. (I’m sorry to pick on you Nevada, but your residents do face higher financial risk than people who live in some other areas of the country!)  

-In April, Nevada was one of the 10 states with the highest unemployment rate.

-Nevada has the second highest state average bankcard debt (at $6,638) and the highest incidence of credit card delinquency (2.04 percent).

-In 2008, Nevada had the nation’s highest state foreclosure rate. 

You get the idea, so I’m going to stop picking on Nevada and get to the point: the higher your risk of experiencing a financial emergency, the higher your emergency savings account should be.

For example, you might choose to aim low if you…

-Are part of a dual income family
-Have assets that you could sell if necessary
-Work in a field that is experiencing growth
-Are actively working on repaying debt
-Are risk tolerant

You might choose to aim high if you…

-Are the sole wage earner
-Care for a large family
-Live in an area that is greatly impacted by the recession
-Have health problems
-Are risk averse

If you still aren’t sure how much to save, remember that this does not have to be an either/or situation and that any savings is better than no savings.  The key is to begin expecting the unexpected.