Author Mark Kantrowitz, creator of a widely acclaimed Web site, interprets the one third rule this way: "you should expect to save one-third of the anticipated college costs, pay one-third from current income and financial aid during the college years.

And then you should borrow one-third using a combination of parent and student loans." Financial advisers also suggest that kids contribute, saving large monetary gifts or a portion of their earnings from part-time jobs.

When your child is in the 9th or 10th grade, sit down for a talk about college and the financial picture. Students need to understand what it takes to get them through college. Seek financial aid, scholarships, grants or other assistance, but don't over estimate what you'll get.

The good news is that more than half of all students receive some kind of financial aid according to the College Board. To sum it up: one-third saved before college, one-third from current income and financial aid, and one-third from parent and student loans.

Now let's look how to save money while you are in college. The best way is to budget money and try to figure out how much money you have for the each year. Or better yet, divide it down by semesters, quarters or months.

Then make a list of everything you spend money on for the first month. From there you will have more of a blueprint of how you want to develop and set aside monthly funds. The biggest tip to earn money to be able to work with and budget is to work, work, work, during all breaks from school.

Save the money you make, and when the school year starts you will know where the monthly money goes with your previous made budget. Figure out where you will be getting money from each month, or in some cases every semester or quarter, and disburse it accordingly.

Think of everything you will need to pay for, from insurance and school bills, to cell phone bill and groceries. Once you can see everything on paper, you will be able to figure out if the money you have to work with every month will be enough for you.

Each month becomes easier for you to know exactly how much money is needed to set aside due to the draft or budget you have kept prior.