College tuition goes up an average of 6% and some parents and students are having a hard time paying for it.

Most college students couldn't possibly pay tuition bills themselves, and it isn't easy for parents to shell out money either.

"The best decision is a self administered Section 529 Plan; there are about 84 different plans. I recommend going to an investment advisor who is qualified to analyze all of these plans. You don't have to participate in the plan offered by your state," Financial Consultant Chip Bailey said.

The Section 529 Plan consists of a combination of stocks and bonds and is tax free, but there is a down side.

Bailey explains, "You’re at risk because they are investing in securities that are not guaranteed, even government bonds. Their principal is guaranteed by the government."

If a parent opens up a regular savings account at a bank, the only way to avoid taxes is to put the account in the child's name, which means that child could spend that money on something other than educational costs.

The plus side of a bank account is that your money is insured by the FDIC.

"Banks offer accounts that are guaranteed by the Federal Deposit Insurance Corporation, and if you want a risk free account, than that bank is your place to go," Bailey adds.

Some parents just aren't aware that if they don't start an education fund, they or their children could face serious financial struggles in the long run.

"You can't pay those expenses out of pocket. It’s going to be paid by a student loan and that is going to take years to pay back," Bailey concluded.

Putting away even a small amount of money each month will help.

If you open a Section 529 Plan, but your child does not go to college, the money will be well spent. Parents can use it toward their retirement fund.

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