Children's education...

Recently, my elder dotter reached the age to attend kindy. I was searching aroung together with my hubby to look for a suitable kindy for her. Then, this experience alert me into something... MONEY...to get the children start from Young( may be at birth) till... University (at least)...
While owing a paper qualification is becoming increasingly common, the cost of acquiring it has skyrocketed over the years. Parents have to start saving for our children's education at birth, if not, how are we gotta cope with all the inflation and etc..worse now is the economic downturn....
It's only a simple issue of going to KINDY.. and it triggers me to MONEY issues... and further education planning for the next 20 years down the road !! Am i too paranoid or it's really a facts ??
Then i read from an article about children's education planning. What's the first few consideration that we have to start with ??
1st - decide on the level of education you wanted to provide your kids with;
2nd- the location of the university and the duration of the course; and lastly of course
3rd - look at your own financial capacity to help you decide what you can afford.
Wow... i told my hubby that we really got to have some serious thinking about this issues.. of course we wanted our children to have the highest education level possible ( for the 1st step); then 2nd step.. not sure which location of Uni yet as we still do not know what's our children's interest and their capacity..but , i guess whatever the courses is, minimum they gotta be in Uni for at least 2-3 yrs. which might costs us about RM200k now, but factored in the inflation rate at 5%, it might need to have amassed RM500k by the time they turn 18. (for me , i need to x 2 for all the costs as i have 2 children .. sigh ~~)
I guess the only solution is i better start early to invest in some educational plan or somewhat.. we have to definetely cut down our weekend luxury from now on for us to make it happen for them...:P