Feeling financially strained because there are only a few more years until your child graduates from high school and begins college? Financial advisers across Lawrence say you’re not alone.

Less than one-third of parents have enough saved to meet their college savings goals, area financial planners say.

Phillip Rademacher and his wife, Rachel, co-owners of Rademacher Financial Inc., can offer assistance to clients seeking investment and financial planning advice.

The average cost to attend a state university is $54,000, and at a private school the cost can be as much as $118,000. But don’t despair; assistance is available.

“One of the first choices parents have to make is whether they want to put the money in the child’s name or maintain control,” said Phillip Rademacher, president of Rademacher Financial Inc. “There’s more you can do when it’s in the child’s name.”

Rademacher suggests families go through some simple steps when planning for college finances. First, determine how much of your child’s education you want to fund, then immediately start saving at least $50 to $100 a month.

And Rademacher said the age-old warning of putting all your eggs in one basket applies to saving for college as well. He said it is important to diversify the investments you use for college savings plans.

State-sponsored college savings plans are one way of doing that. Programs called Section 529 plans are becoming a popular option because their earnings are tax-free and can be used for tuition, fees, books, housing and other typical college expenses.

Participation in the plans also isn’t limited to just the parents.

“They are more flexible and can be used for more expenses and can be transferred to basically anyone in the family, said Peggy Johnson, senior financial adviser for American Express Financial Advisors. “I see a lot of grandparents using the 529 plan because it gets money out of the estate.”

Educational IRAs have been around for some time, but new changes in how parents can use them have made the IRAs more attractive. New laws recently went into effect that lift the $500 yearly cap on investments.

“Starting in 2002 you can contribute up to $2,000 per year, which suddenly makes EIRAs quite a nice tax break,” Rademacher said.

If you have several children or grandchildren, you can contribute $2,000 to separate accounts. Annual contributions are allowed until the children turn 18. To use this, you must have a gross income below $190,000 and the IRA can be used for college as well as private K-12 schooling.

There’s also two education tax credits available for middle-income families.

The Hope Scholarship credit amounts to 100 percent of the first $1,000 of a college student’s annual tuition and fees, plus 50 percent of the next $1,000. The maximum Hope credit is $1,500 per qualified student per year and can only be claimed for two tax years.

The Lifetime Learning credit is less restrictive and is used to help defray college costs after the first two years. It’s available for an unlimited number of years and without any requirement to carry certain course load. The lifetime credit equals 20 percent of the qualifying tuition and fees up to $5,000 for a maximum credit of $1,000 per year. Starting in 2003, the credit will become more generous. It will equal 20 percent of tuition and fees up to $10,000 with an annual credit of $2,000.