All those reports about the rising cost of a college education appear to be having an impact on the savings patterns of American families.

A survey finds that parents with children under age 18 are more concerned about saving for their children’s educations than they are about saving for retirement.

The study was commissioned by The Vanguard Group mutual fund company, Valley Forge, Pa., and Upromise Investments Inc. of Needham, Mass., which channels shopping rebates into educational savings accounts.

The survey found that 37 percent of the more than 1,100 parents who were interviewed said saving for college was of primary concern, compared with 34 percent who said retirement was their top financial concern. The rest said that saving for a house, car or other major purchase was most important.

The cost of sending children to college has been rising fast in recent years. According to the latest survey from the College Board, a nonprofit association based in Washington, D.C., tuition and fees at four-year private institutions rose nearly 6 percent to $21,235 for the 2005-2006 academic year from $20,045 in 2004-2005, while costs at four-year public institutions went up more than 7 percent to $5,491 from $5,126.

Most financial advisers urge families to save first for their own retirement and then put money aside for their kids’ education, arguing that families can borrow to fund college but not retirement.

But Heywood said this conflicts with parents’ aspirations for their children.

“People hear that and they say, ’Too bad about retirement savings; my kids are going to college.“’

The families who have started saving for their children’s college educations have set aside about $4,700 per child so far, the study found.

It said that about four out of 10 families were familiar with the Section 529 college savings plans, which are tax-favored programs set up by states to help families save for college. Savings in 529 plans grow tax-deferred, and withdrawals are tax-free when used for education.

On the Net:

www.vanguard.com

www.upromise.com