Most parents find it difficult to simultaneously fund their children's college education and their own retirement. However, a few tips can help them establish priorities - and develop a plan that makes the most of the money they do invest.

Competing interests?
"When advising parents on how to successfully save for college and retirement, I'm very careful to set attainable goals," says Christy Asbach, an assistant vice president with Fifth Third Bank. "Most parents want to help their children pay for college. But, unless they are extremely wealthy, I usually advise them not to fund their child's entire college education."

She believes young adults benefit from having to pay some college expenses themselves. "It teaches them the value of money - and the value of education." While she promotes sharing the responsibility of college expenses, Asbach reminds parents that funding retirement is solely their responsibility.

What does college cost?
According to the College Board's Trends in College Pricing (2007), the average cost for 2007-2008 for attending a four-year public college or university is $17,336, and the cost for a four-year private college is $35,374 (cost estimates include tuition and fees, room and board, books, supplies, etc.). These costs are expected to increase by at least 5 percent a year. (The College Board estimates the 2007 increase to be 6.6% for four-year public colleges and 6.3% for four-year private universities over the previous year.)

To determine how much money you need to save each month to fund these costs, use Fifth Third's online calculator. Here are two examples: If you start saving for your 10-year-old to attend a four-year public college ($18,000/year expense), you need to save $1,022 a month (at 6 percent interest) to fund the entire amount. If you have a newborn and begin saving right away (at 6 percent interest), you need to save $610 a month.

Tips for investing wisely
Whether saving for college or retirement, Asbach offers two well-established investment tips:

• Start early. Simply put, the longer money is saved, the more interest it is likely to earn. This is due to the principle known as compound interest, which is when previously earned interest earns interest.

• Save consistently. Asbach recommends saving a portion of every paycheck. Instead of depositing large sums at once, you save a portion of every paycheck. By saving a small amount of money consistently over a long period of time, you'll be surprised how quickly your savings can grow.

Asbach encourages people to speak with their banker for additional information on savings strategies. She also says some parents may want to seek information on plans that help fund private grade school and high school tuitions. Parents may also want to read "Finding funds for college."

For more information on funding tuition and retirement, contact Fifth Third Bank at (866) 475-4201 or visit the Fifth Third website.