Open an Educational Savings Account (ESA) or a 529 plan as early as possible in your child's life. These accounts earn money based on investments and savings interest. Deposit as much as you can over the years leading up to college. According to Dave Ramsey, depositing $2,000 a year for 18 years will yield $166,000 for college.
Put money aside in CDs, bonds and a high interest earning savings account. This can be done in conjunction with the ESA or 529 plans to ensure that you have college savings in different accounts.
Apply for scholarships and grants. Have your child apply for these the school year before college starts. There are athletic scholarships, academic scholarships, need-based grants, work study programs and prize grants. Begin by filling out a FAFSA form, a link to which is available in the Resources section of this article. The government and schools use information provided on FAFSA to determine financial aid eligibility.