We know that we should be starting to save for our children's college education, even though they haven't even entered elementary school. How do you ever find out what the best savings programs are? - Bewildered Parents
Answer: You have got to do your homework. Serious research is essential to learn about all the options that now exist as ways to set aside money for your children's education. Even after you have embarked on a savings plan, you will still need to do research at least once a year to look for changes in state and federal plans that might have important tax implications. Plus, you will want to continually investigate the emergence of new savings programs.
Rather than creating your own personal savings plan, you might want to use one of the many existing ready-made plans. Your own state as well as other states will have prepaid tuition plans that will let parents, relatives and friends purchase tuition at today's costs to be used in the future. States also have college savings programs through state-sponsored investment accounts. There are also Education IRAs as well as plans offered by financial institutions.
The easiest way to get current information on college savings plans is to visit the following Web sites: www .collegesavings.org, www.finaid.org and www.collegeboard.com. If you consult a book on saving for college, be sure it is up-to-date.