What Will Brad and Angie's New Baby Pay for College?

A new baby is apparently on its way for the seemingly never ending Jolie-Pitt family.

Angeline Jolie stepped out with her partner Brad Pitt and an obvious baby bump at the Independent Spirit Awards in Santa Monica February 23. Although the couple has not publically announced that they are expecting, when she walked the event's blue carpet in a tight fitting black dress, Jolie’s figure did all the talking necessary. Jolie’s new baby will be welcomed by 4-year old Pax as well as his brother Maddox, 6, sister Zahara, 2, and sister Shiloh, 20 months.

And when Jolie did not show at the Academy Awards, the ceremony's host, John Stewart, joked that he knew why: "It's tough getting 17 babysitters on Oscar night." As Jolie’s family continues to expand, so does the future price tag for the education of her babes. While the financial burden may not be the same for Pitt and Jolie as it is for others, it may be worth mentioning to all parents that the cost of tuition is growing at a rate much faster than that of inflation.

“Even for parents, like Brad and Angelina, it's wise to start thinking early about college costs. Put a plan together when kids are young," says Jeffrey Coghan of The Hartford Financial Services Group, Inc. (HIG). "[That] will only ease the pain of tuition bills later on." Talk about future pain. According to a 2007 CollegeBoard study, the average cost of tuition for both private and public four-year institutions was up more than 6% from 2006. If the trend continues, Coghan says, the Jolie-Pitts could end up forking over more than $1.6 million to sends their kids to college in California. Ouch.

With tuition only getting more expensive, Martha Holler, a spokesperson for Sallie Mae (SLM), the nation's largest student lender, says that it is never too early for parents, students, or even family members to start saving for college. "Saving just a little bit each month will add up quickly," says Holler.

The most popular choice for college savings is a 529 Savings Plan. This type of fund allows people to save money for higher education costs in a tax-deferred account. There is no limit on how much can be invested into a 529, and the money can be withdrawn at any time. If the money is used for qualified higher education expenses, then it is exempt from federal income tax. According to Coghan, director of 529 programs at The Hartford, you can open a 529 plan for anyone—your child, your grandchild, a stranger, or, even yourself, for that deferred college plan or for grad school. Note that plans started for children by non-parents are also beneficial because that money will not be counted against a family's financial aid application.

Stuart Ritter, a certified financial planner with T. Rowe Price (TROW) says that investing money in mutual funds is another good way to start preparing for college bills. With a mutual fund however, it is important to distribute the money according to personal situations. “[I] suggest determining the amount you should invest in stocks based on the time horizon until your goal,” says Ritter. According to Ritter, if a child is more than 15 years away from entering college, it is safe to invest completely in stocks. As the child gets older, and closer to entering college, money should be moved to less volatile investments, such as bonds.

No matter what, as soon as the next baby "bump" in your life starts to show, start saving, says Sallie Mae's Holler. "The sooner you begin," she says, "the more money you will have to make a big down payment on the cost of college.”