Harris Helpful Hints

           Saving For and Financing Education in a Tough Economy



    CHICAGO, Aug. 25 /
EMWNews
/ -- A sputtering economy, fewer college

loan providers and a lackluster stock market are threatening to drain the

financial resources many parents have counted on to pay for their

children's college tuition.



    Tougher times often call for tougher measures, and advisors at Harris

suggest that students and families take advantage of the advisory services

that local banks can provide. This professional advice can help families

begin preparing and saving for education, as well as assist students in

developing personal budgets, managing student loans and choosing the right

credit card for emergencies.



    The following tips cover topics you may want to consider and discuss

with your family and your financial advisor. Harris consistently provides

the following advice around saving for and financing education, but never

was it more relevant that in today's tough economy.



    1. Start saving as early as possible -- Increasingly, parents are

starting college funds before their little ones even start kindergarten.

There is no such thing as starting an education fund too early. Once the

need for diapers disappears, contribute that extra $60 a month to the

education fund. When the days of daycare are over, move that tuition to the

college account. And don't be afraid to ask grandparents or other family

members to contribute to an education savings account rather than buying

expensive birthday or holiday gifts for the baby.



    2. Explore several savings options -- There are numerous savings

options out there, and many are specifically geared toward saving for

education. Many states now offer prepaid tuition plans where you can

purchase tomorrow's tuition at today's prices. Often these plans offer tax

advantages. Other options include 529 Savings Plans and Coverdell Savings

Accounts (CESAs). A quick survey of the Internet and a meeting with your

personal banker or financial advisor can provide valuable information and

advice on which plan may be best for your family.



    3. Understand the real costs of education. Budget and manage

realistically -- Tuition and school fees are just part of the overall cost

of college life. Begin by obtaining a detailed accounting of fees from your

college, sit down with your teen and develop a realistic estimate of

one-time and recurring costs, including textbooks, supplies, computers,

transportation, general living and social expenses before setting a budget.

Developing an effective monthly budget -- either with a budget calculator

or through a financial professional -- will teach students how to manage

their money effectively.



    4. Plan for the unexpected -- Even if you plan well, you may still face

emergency expenses at some point during the school year. To manage these

situations it is useful to have access to an emergency fund or alternative

financing, such as a student credit card or a line of credit. For example,

Harris offers a student MasterCard and various lines of credit. Our

personal bankers can discuss with you the best way of using each option,

depending on your personal situation.



    5. Pay as much as you can, as you go -- Part-time jobs, paid

internships and even small scholarships will all add up and can go a long

way toward minimizing the debt you will have in the long run. If at all

possible, you will want to avoid graduating with so much debt that your

first few years on the job are basically devoted to paying your student

loans.



    6. Know your financing options -- If you do not qualify for government

assistance and/or don't have enough savings, many financial institutions

can provide financial help with a loan or a line of credit, such as Home

Equity Loans or Lines of Credit. Your personal banker can help you find

sources of funding you may not have considered.



    7. Plan for today and tomorrow -- By having two different bank

accounts, students can manage their short and long-term financial needs

separately. A checking account is perfect for daily and weekly needs, while

a savings account is a good place to park money that will be needed later

in the year.



    8. Schedule a financial "check up" with your personal banker -- Family

financial circumstances can change dramatically while you are in college,

so be sure to schedule regular financial check ups with your banking

professional. Especially during tough economic times, you may find that you

qualify for loans that were unavailable to you last year. Scheduling

regular financial check-ups with your banking professional is one way to

maintain healthy finances. It can also help you make any necessary

financial adjustments along the way.



    9. Continue pursuing scholarships -- many students explore financial

aid in the form of athletic, academic or civic scholarships prior to

freshman year, and often assume that these important sources of funding are

a one-time opportunity. Unfortunately, many thousands of dollars in

scholarship money go unused every year. If you have excelled academically,

if you earn a spot on an athletic team, or if your extracurricular

activities now qualify you for a civic or community scholarship, by all

means apply. Several smaller scholarships can add up to big savings in

college tuition.



    10. Bank smart -- Simple choices such as avoiding another financial

institution's ATM machines -- and their costly fees -- can add hundreds of

dollars to your account over the course of a school year. Paying by cash

instead of credit for smaller items such as food purchases can also do the

same. And perhaps most importantly, protect your identity by shielding your

hand when entering PIN numbers and only using credit or debit cards with

reputable businesses.

    About Harris



    Harris is an integrated financial service organization providing more

than 1 million personal, business and corporate clients with banking,

lending, investing and wealth management solutions. The organization is a

member of the BMO Financial Group (NYSE, TSX: BMO), which also provides

corporate and investment banking services in the U.S. under the BMO Capital

Markets name. For more information, please visit http://www.bmocm.com or

http://www.harrisbank.com.



    Harris(R) is a trade name used by various financial service

subsidiaries of Harris Financial Corp. Banking products and services are

provided by Harris N.A., The Harris Bank, N.A. and their bank affiliates.

Members FDIC. Brokerage products are offered through Harris Investor

Services, Inc. (HIS), a registered broker/dealer, member NASD/SIPC, and SEC

registered investment adviser. Insurance and annuities are offered through

Harris Bancorp Insurance Services, Inc. (HBIS). Securities are provided by

BMO Capital Markets Corp. (BMOCM), a registered broker dealer and member

NYSE, NASD and SIPC. HIS, HBIS and BMOCM are affiliated companies and are

wholly owned subsidiaries of Harris Financial Corp. Products offered by

HIS, HBIS and BMOCM are Not Insured by the FDIC or any Federal Government

Agency, Not a Deposit of or Guaranteed by Any Bank or Bank Affiliate, May

Lose Value. The purchase of insurance or an annuity is not a condition to

any bank loan or service. Financial planning and investment advisory

services are provided by Sullivan, Bruyette, Speros & Blayney, Inc., an SEC

registered investment adviser. Family Office Services are provided by

Harris myCFO, Inc. Investment advisory services are offered by Harris myCFO

Investment Advisory Services LLC, an SEC registered investment adviser and

wholly-owned subsidiary of Harris myCFO, Inc. Not all products and services

are offered in every state and/or location.