Posted by Geoffrey,
One of the smartest ways to save for college is through a 529 Plan. 529 Plans are College savings funds that are funded with after tax dollars (net pay) which grow tax-deferred and allow tax-free withdrawals for the express purpose of paying qualified education expenses (tuition, room & board, required computers & required fees) for secondary education purposes (i.e. post-high school education) such as college, graduate school, trade schools or vocational schools. Anyone can establish a 529 plan for anyone else, however, typically a parent or grandparent will establish a 529 Plan for a child or grandchild, through a financial advisor, with a small lump sum contribution followed by automated monthly contributions. You can even direct your employer to make the monthly contributions from your net pay.