With the average cost at an in-state four-year college hovering around $22,000 a year, financial experts recommend college savings start early.
"The most important thing people need to understand is you need to start saving when your children are young," said Brian Gremminger, an Edward Jones Financial adviser in Magnolia. "When we see a birth announcement, we advise parents to open a college savings account of some type."
For young children, a common type of savings plan is a 529, Gremminger said. It is the most flexible savings plan and contributions to this plan are tax free and have a large lifetime contribution limit of more than $200,000, depending on which state you reside in.
In addition, the 529 plan does not have capital gains tax when the money is withdrawn for college.
