It's no secret that the cost of a higher education continues to surge.
The College Board reports that tuition, fees and room and board charges at private nonprofit four-year colleges were up 14% over the five years from the 2008-09 to 2013-14 to $30,094. In public four-year colleges they were up over 27% in the same period to $8,893.
According to JP Morgan Funds, 69% of the money set aside for a college education is held in cash accounts because parents and grandparents are worried about the risk of investing in financial markets. But the interest on cash can't keep pace with tuition inflation.
"In rolling 18-year periods since the late 1970s, cash has not kept pace with the average tuition increase," according to JP Morgan Funds.
Rather than just saving cash, the analysts recommend taking risk and investing.
"A diversified 50-50 10% portfolio of stocks and bonds offers higher 8% returns than cash, and gives the investor the opportunity to achieve returns high enough to pay for Junior’s education."
More From Business Insider
- Google Made The Tiniest Change To Its Corporate Logo — See If You Can Even Spot It
- This Map Shows The Largest Employer In Every State [UPDATED]
- There's No Way Around It: Apple Is In 'Reset,' Says Long-Time Apple Watcher Walt Mossberg
- 8 Months After Learning To Code And Launching An App, Leo The Homeless Coder Is Still Homeless
- Jim Carrey's Commencement Speech This Weekend Had A Poignant Anecdote About Failure