by Gene Walden

If you have grandchildren or children at home and you’d like to help with their college education, it pays to start saving as early as possible.

The government has given us a tool that makes saving for college a lot easier. The 529 college savings plan is a great tax-advantage program to help you get a head start on your children’s college costs.

There are two excellent options available to help you save for college — the 529 college savings plan and prepaid tuition plans. The money you contribute to a 529 plan grows tax free within your account, and withdrawals from the plan for qualified educational expenses are exempt from federal taxes.

You might also consider a prepaid tuition plan. These are offered primarily by state colleges and universities to help you lock in today’s prices for tomorrow’s tuition costs. They allow you to pay tuition in advance to cover your child’s fees and expenses. What if your child decides on a college in a different state? Fortunately, these plans allow you to transfer the value to out-of-state public and private colleges.

Don’t wait too long to start your college savings plan. Talk to your financial advisor about setting up a savings plan for you in order to ensure that your children or grandchildren have the resources they need to get a college education.