1. 529 Plans
A 529 Plan is an educational saving plan that is designed for families to set aside funds for future college costs. There are two types of 529 plans; prepaid or savings. A Savings Plan works like a 401K, you invest your contributions into mutual funds or other investments and your account will go up or down in value based on the performance of those investments. A prepaid plan lets you pre-pay for an in-state public college education allowing you to make one large or small monthly payments to cover the costs. Basically, you pre-pay for your child's education at today's price. We purchased the Pre-Paid plan for our son - we make a minimum payment each month and when he is ready for college, his 4 year degree will be paid for.
