What is the best way to save for my childrens college education.?

I have a 1 year old and an infant on the way. I want to plan for their college education and put money away.|||You're so smart to start now. I did the same thing - my daughter is 18 now - and I still have a bit of a shortfall. (Colleges are expensive!)





Anyway - check into 529 plans. You may get a tax break if you invest in your state's plan - but other states' plans may have other benefits. The money goes in post-tax and grows tax free. As long as the money is withdrawn for educational expenses, there's no tax on the earnings either.





Something I also did was have money automatically deducted each month from my checking account - and put into my daughter's 529 fund. I didn't really miss the money because I never really had a chance to see it.





Good luck!|||529 plan|||There are numerous methods, get in touch with a financial planner and they can explain each.





You might want to research 529 plans. They are basically mutual funds that receive tax deferred growth and tax free withdrawals for education related expenses.





Another method is to purchase education credits at todays tuition cost from the university (there-by saving the what seems to be the 12% annual tuition growth). Most universities allow this and some states allow you to then transfer those credits to other state institutions when the child actually attends the university.|||Good decision. College today is running anywhere from $20K to over $40K a year, and going up faster than the rate of inflation.|||Educational IRA|||In addition to the 529 plan suggestions, you could also sign up at www.upromise.com. It's not much, but it does help. I've been signed up for almost six years - have accumulated about $200, so not much. But I still have about 13 years before my first one goes to college. Good luck!