Uma C. Red

An online service helps parents save for tuition fee every time they spend for groceries, gasoline-or even a house. as parents indulge their children with video games and other gifts, they’re often unable to shake one of their biggest worries: every dollar spent today is one that won’t be around for the kids college years. A recent report from the College Board only stoked those fears: in the past year annual tuition costs surged an average of 7.7% to 3,754 for a four-year public college and 5.5% to $17,123 for a private university. Fortunately, though, there are now more ways than ever to save for college.

Forty-eight states currently offer a prepaid-tuition plan or tax-advantaged college savings plan, and several have both types of these so-called 529 plans. in the first half of the year, the number of prepaid-plan accounts was up 33% from the same period in 2000, while yhe number of savings-plan accounts rose 181%.

A for-profit college savings network called Upromise hopes to add even more savers with a unique twist on the 529 program. It offers parents ways to save even as they spend. a few cents of each dollar they pay for gas, a car or even a home can go into a special college-savings account set up through Upromise. ” People are stuck. They’re not saving, and they feel guilty. This allows them to get started,” says Upromise founder Michael Bronner.