Estimate a monthly budget and include how much you would like to put into a college savings plan each month. Begin saving up for a minimum contribution into a savings account. Many college savings accounts have a specific minimum contribution that needs to be met in order to open the account.
Research available college savings plans. College saving 529 plans are state-sponsored plans that grow your money tax-deferred. Each state has different 529 plans with various options. The largest advantage of a 529 plan is that you may take out money for qualified educational expenses, like tuition costs, tax-free. Also, the money put into a 529 plan is considered tax-deductible in many states.
Compare different 529 plans within your state. There are many different options for 529 plans, varying on fees, tax benefits, investment options, minimum and maximum contributions and investment fund managing companies. Research plans that may fit your budgetary concerns best.
Research financial aid packages for your current income level. Federal financial aid, via the Free Application for Federal Student Aid (FAFSA) forms, is widely available to many families and may provide support for your growing savings account. Financial aid is often in the form of low-interest federal loans, but 40 percent of aid given is scholarships.
Look into using the Uniform Gift to Minors Act as a way to boost the college savings for your children. The UGMA allows parents or guardians to set up an account, up to $11,000, to be given to a minor for use on education, housing or other needs. The money used in your UGMA account is tax-free, making it a good investment for your savings.