This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

Think diapers are expensive? Just wait until you have to pay college tuition.

Thinking about an expensive need in the future can be scary. How will you come up with the large sums needed to pay for college, a wedding, retirement and more?

For many people, the answer is zero coupon bonds. A small investment in~~ your money grow free from federal income taxes.

Zero coupon Treasury-backed bonds, called CATs and TIGRs, are not issued directly by the Treasury but are fully collateralized by U.S. Treasury bonds.

Zero coupon agency bonds are issued by government agencies. They're not~~~ directly guaranteed by the U.S. government but carry an implied guarantee.

Zeroes should be purchased with the intention of holding them to maturity. However, if your circumstances change and you need your money earlier, zero coupon bonds can be traded on any business day at their current market value, which may be more, less or equal to the amount you originally invested.

If you think zeroes may be right for you, select a financial professional who is knowledgeable about them and whose firm maintains trading specialists in zero coupon bonds. Be sure you understand about pricing, liquidity, maturity, call provisions, phantom income, guarantees and taxation. If you'd like to invest a small amount today and know exactly how much you'll receive at a certain date in the future, zero coupon bonds could be just what you're looking for!

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.