Saving for College

“How to save for college” generates almost 50 million results in the Google search engine. And it's no wonder - parents want the best for their children, and hope that a good education will help them find a good-paying job later.

So what's some of the best advice the internet has to offer on the subject of saving for college?

Qualified Tuition Programs:A 529 plan is a tax-advantaged savings plan sponsored by states, state agencies, or educational institutions. It is designed to encourage saving for college costs, and as long as they are used for eligible college expenses, the earnings in the 529 plans are not subject to federal tax. For more information you can contact your broker or visit the College Savings Plans Network.

Roth IRA:Like a 529 plan, you contribute after-tax money. After five years, investment earnings can be withdrawn tax-free and penalty-free to pay for qualifying college expenses. Another plus for using this method to save for higher education is that if your child decides not to go to college, you can still use the money for your retirement.

Financial Aid:Students can apply for federal financial aid. There are also student loans, scholarships, and other types of student aidavailable.

When’s the best time to start? The answer is as soon as possible. Regardless of what school your child chooses, planning for it early and often will give them their best chance to achieve their educational goals.