Finance

How to save for your child's college funds

It is important to start saving early for your child's college education while they are still small. What tuition costs today will inevitably go up and you need to find the best way to make the money you save for your child's college education to grow. You also need to invest the savings so that it does not get eaten up by taxes. Here are some tips to consider in helping you to save for your child's college funds:

.  Look into a U.S. state-run 529 plan. These allow your money to grow tax-free. In fact, they are virtually tax free as long as the money is spent on higher education. Plus, in some cases the contributions themselves are tax-deductible.

.  Some savings plans even let you start before your child is born.

.  There are some U. S. state prepaid college tuition plans that go up in value as tuition increases. These rise in value over time so that the plan will buy the same amount of tuition in the future irregardless of inflation.

.  Consult with an investment agency to see what kind of education savings plans are available. These are available in both the U.K. and U.S.

.  Research information on savings and savings assistance plans on the internet.

.  Look into custodial savings accounts which are savings accounts in the name of your child however you as a parent control how the money is managed until the child becomes of legal age.

Know your savings plan. Study how the money you are saving is growing and keep informed on tuition costs. Make changes to how the money in these plans is invested as tuition trends change. Don't wait until the child is ready to go to college to review your plan.