11. 11 For those who don't know, a 529 plan is a vehicle you put money in thats designated for college. There are a lot of 529 plans, which all come with their own annual fees and operating costs. Generally, 529s have tax advantages, such as earnings that arent subject to federal tax. Almost every state has its own 529 plan, but you can put your money in any state's 529, and you may find that there are some state plans you like better than your own. So youll want to do some research before signing up. SavingforCollege.com is a good place to start.
12. 12 If you have a four-year-old, you're out of luck, but if your 14-year-old is baby- sitting, and certainly if your 17-year-old is flipping burgers, he or she could start putting some money away for college. That's a suggestion from George Walter, vice president for enrollment services at La Salle University in Philadelphia. Walter acknowledges that it isn't always feasible, but he suggests students break up their paychecks into three portions.