A little money can go a long way. As a parent or student set aside a portion of money each time a holiday or birthday comes around and your receive a gift. You will be surprised how quickly it can grow. Now, we all know this wont pay for all of your college education, so you really need a plan. As a parent, start as soon as you have kids in mind. Start setting aside money directly from your paycheck, so that you cannot access it. Look for investment options with tax benefits, such as a 529 or IRA. Do the math, and create a realistic plan for investment. As a family you need to have the discussion early on so you know how much you can set aside and how much will have to come in the form of tuition assistance.

Parents should begin saving for college as soon as possible. In no way is it recommended that parents utilize their retirement savings to cover the cost of college tuition. Building a savings plan for college is important and can definitely grow over time. It is best to work with a financial planner to best maximize your savings.

A 529 Plan is a college savings plan that provides its saver with tax advantages. There are two types of plans: Prepaid and College Savings Plan. All states throughout the US offer one type of plan and in addition, some individual colleges offer a prepaid tuition plan. A prepaid plan allows its saver to purchase credits/units for future tuition costs. It locks in tuition prices at eligible private and public colleges. The enrollment period for this plan is limited. A college savings plan permits its saver to open an account with their money and offers him or her various investment options. The tuition price is not locked in at either a private or public college. The enrollment period is open all year. It is recommended that the saver research their states 529 Plan option and/or speak to a financial advisor.

The sooner you begin to save money for college the better. There are numerous college savings plans that both parents and students can utilize to best meet post-secondary costs. Parents should not sacrifice their retirement monies in order to pay for college. Stocks, mutual funds, and a 529 Plan are some of the ways that allow you to save money for college. Also, keep in mind that a student may be eligible for grants and scholarships based on their academic and/or extracurricular performance. Both of these awards often times do not have to be paid back and could be made available each year the student is enrolled in college.

It's never too early, but don't wait too long to start.

A 529 plan is a qualified savings vehicle that allows the owner to have tax free gains when the money is used for higher education. The best site for more information is savingforcollege.com.

529 Savings plans, 529 Prepaid tuition plans, and to keep the money out of the financial aid calculations, tax deferred annuities. There are other ways, but most involve a larger degree of risk. The most important thing is that the money will be there, and proper income planning & asset repositioning will provide you with the opportunity for maximum financial aid.

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529 plans are tax free accounts that allow you to set-aside money for qualified educational purchases (tuition, books, supplies, etc.). They are typically low-fee and offer many different options for investment. They can vary by state, so see your local bank investment agent or financial advisor for more help. You can also do a search for your state's plan (i.e. scholarshare in California).

ASAP. College can be quite expensive and even putting aside a little money at a time an make a difference over time. Research options with Tax benefits, such as a 529 plan and see how you can contribute directly from your paycheck. If you never see the money in your account, it will be much more painless. Another option is to ask family members to make contributions to a college account rather than buying an expensive gift each year. If this starts early on, your child will appreciate the smaller gifts and as they get older understand how this money will help them in the future.

Parents and students alike should make monthly contributions to a savings plan. Encourage grandparents and others to forego expensive gifts with a combination of a modest gift and a contribution to a college fund.