Kate: I have the same problem. I talked to my parents, and they said there are investment options they can use. I want to discuss it with them more.

Jane: I'm really worried about how my parents are going to pay for college! I can get some scholarships, but it won't be enough.

Jane and her friend Kate are both sophomores in high school, and are already looking at colleges and scholarships that they can apply for. However, both girls are not sure how they are going to pay for college because neither of their families can afford to pay full college tuition.

Kate's mom: Currently, the best options for our family are certificates of deposit, municipal bonds, or stocks. We will probably use certificates of deposit as we can choose the length of maturity, which means we can plan for the CD to expire after you finish college. A CD does not cost a lot, which means we can continue to save money for your college tuition without having to spend too much. There is not a high risk involved, so this will be a safe and worthwhile investment.

Jane: This is great information! I'm going to talk to my parents and see what they have to say.

The two friends went to Kate's house and talked with her mom about the investment options that were available. Kate and her mom decided that certificates of deposit were the best option for their family.

Jane's dad: A combination of municipal bonds and government savings bonds would be the best option as they are a safe investment. State and local governments cannot go out of business, so they cannot default. Municipal bonds are also tax exempt, so there can be money saved.

Jane's mom: Government savings bonds can be beneficial, even if it takes a long time for there to be a lot of money made. Since you're a sophomore,and you will have two years before you start college, you can gain a decent amount of money. We can also open a savings account for your sister, and she will be able to enjoy the same results.

Back at home, Jane talked with her parents and younger sister about what investment options would be best for their family. They decided on both municipal bonds and government savings bonds. These options will provide Jane's family with safe and secure options that will provide them with satisfactory results.

Our investments are going very well! We have set up our savings bonds and municipal bonds, and my parents are very optimistic about the money we are going to save. My mom likes that she has to pay less taxes!

Our certificates of deposit are running smoothly, and I don't feel as nervous about how I'm going to pay for college because my family has already set this up.

A few months later, Jane and Kate met up to talk about their investments. Both were very pleased with their choices, and felt that they were benefiting from them. Choosing investment plans with their family and discussing them has educated Jane and Kate about the importance of investments, and now they feel more secure about their future.