Hi everyone I'm Laura Adams and you're listening to the Money Girl Podcast.

Does the thought of paying for a child's college education make you want to scream?

If you're struggling to pay down debt or save for retirement,

having enough to also fund a kids college

might seem like an impossible dream.

The good news is that saving even small amounts

on a regular basis while children or young can add up to a surprisingly

healthy education fund.

Today you'll learn about my favorite place to set aside money for college so it can grow

like Jack's Beanstalk, a 529 plan.

If you're waiting until your kids get accepted into college to figure out how to pay for it, you're

procrastinating an important financial planning task.

Although parents are under no obligation to pay for a child's college.

I've rarely met any who don't want to contribute something.

The best way parents can save for college

is to use a nifty tax advantage to count

called a 529 plan.

They're offered by states and eligible institutions,

like colleges, universities, or vocational schools

that participate in federal student aid programs.

You contribute money that can be used to pay for a student's qualified college expenses at an eligible school.

Qualified expenses include tuition, books, fees, and equipment for

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