College tuition has gone way up. So, it's crucial to start planning and saving for your kid's college early. Once you've got your retirement and emergency funds in order, make your child's education a financial priority.

Think about creating a special savings plan for education that comes with tax benefits. Once you have a good financial plan in place, you can include this education savings in your monthly budget. It's also possible for family and friends, like grandparents, aunts, and uncles, to chip in and help save for college.

When you use a 529 plan, the money you put in is tax-deductible, and as long as you spend it on qualified educational stuff, you won't be taxed. These plans, which vary by state, don't have income or contribution limits, making saving easier.

Coverdell ESAs are a bit like 529 plans. If you use the money for education, no taxes. But, there are stricter rules – only families earning less than $220,000 can contribute, and you can only put in $2,000 per child each year until they're 18.

Did you know you can pay for tuition ahead of time? Not all states or universities have this option, but it can be useful. However, think about the fact that your child might not end up going to that university or getting admitted. The rules for using prepaid funds depend on the university.

Consider using a custodial account like a Roth IRA in your college financial plan. You can usually take out the contributions without facing taxes or penalties, giving you more flexibility. Talk to us to see if this is the right choice for your family's college savings.