How to Create a Plan for Continuing Education

You can start planning for your children's education even before they are born, and the sooner you start planning the better. Even if your children are older, you can still save. Every amount will help when the time comes for college. Saving allows you to be prepared for the high costs of tuition in the future, and you are going to rest easy knowing that you are going to be able to send your child to college.

1. Create your plan by deciding how you are going to save and what type of account you are going to use. If saving isn't possible financially right now, set goals for the future, possibly when you get tax returns back.


2. Set up a 529 account at a bank or investment firm that you currently use. A 529 account is a state and federal government recognized college fund. You won't be taxed on interest gained, and you can write off the money that you put in each year up to $2,000 on that year’s tax return.


3. Take the money directly out of your paycheck, if that is possible, and also your partner's, if you don’t have join accounts. This is going to send money directly into your children's college fund, and since you never see it, you aren’t going to miss it. You can easily do this with direct deposit through your employer.


4. Tell all of your family members and friends that the account is there and that they can contribute to it if they wish. Friends and family often choose to give money for special occasions like holidays, baptisms, communions and other monumental milestones.