Anyway you save for college is good. I’ll say it again; anyway you save for college is good. You are planning ahead so, you don’t have to worry about making payments all four years or strap your child with a huge debt that can’t be erased, even through bankruptcy. Yes, those college debts still remain when you file for bankruptcy.

Let’s look at the granddaddy of them all: the 529 savings plan. I got tired of googling all the info out there, I actually stopped on page 31 of google and there where so many more articles written. You can have access to so many experts at the click of a mouse. Basically, just go to your broker or go on-line. It is easy to fill out the application and sign-up. I’m going to put some good 529 links at the bottom of this article including a short youtube video by Upromise that sums it up pretty well.

You have heard of a 529 to save, but what about these:

ESA-Educational Savings Account

-can save up to $2000 per year per beneficiary for education expenses

-contributions are not deductable but grow tax free until distribution

IRA –Individual Retirement Account

-you can withdraw money from a Roth or a traditional IRA for education expenses

-you may have to pay income tax on some or all of the money.

Let’s just make it as simple as possible. Figure out the amount you want to have taken out of your check each pay period and have it automatically put into an account. That way what you never see, you never use! Like I said, saving early & as much as you can helps a lot with the magic of compounding interest!

Tell me what you plan to do?

529 links:



Upromise video explanation

ESA (Coverdall Education Savings Account)

IRS info. on ESA:,,id=107636,00.html Scottrade ESA:|Education+Savings+Accounts_Coverdell|coverdell+education+savings+account||1_p

College Hightlight

University of California– class to help parents both campus & on-line

Disclaimer-Sarah Dugo is not a Financial Planner; please seek advice from a reputable source.