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How to Save For Your Child

Published: Thursday, 24 Jul 2008 | 2:56 PM ET

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By: Jessica Mark
Special to CNBC.com

Here's a question Carmen received from a reader in regard to planning for their child's college education:

Kofua from Rhode Island asks: I have a 4-year-old daughter and I want to open a trust fund for her and wanted to put a 529 plan for her college education. What do you think?

Carmen suggests that it's best to start saving for your child as soon as possible. "Get time on your side," she says. "Research which plans work best for you--which have the lowest and most reasonable fees and what's available in your state or out of state for 529 plans and Coverdell Education Savings Accounts." This will be great for tax savings and will be a great long-term investment for college.

Got a question of your own? Use the form below to e-mail Carmen.

>>Read More:
Raising Your Child
Saving For College

I started a company you might be interested in as someone who reports on personal finance. It's Freshman Fund (www.freshmanfund.com). It's like a registry for college savings. Parents go to the site, attach their 529, create a public profile and email friends and family a link where they can contribute directly into the child's 529 account in lieu of or in addition to the usual birthday/holiday gifts. Great for parents and great for gift givers and it's environmentally friendly gifting. --Jeff Frese, NY

Posted on: 28 Jul 2008 11:04 A.M.

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Topics:Colleges & Universities | Personal Finance

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