Saving for College: The Best Choices for Your Kids

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Saving for your kid's college education can seem like a daunting task, but there are a few college savings plans that make it a lot easier. The 529 savings plan and Coverdell ESA offer the two best ways to get a head start and grow those savings substantially over time -- and they're easier to use than you may think.

529 savings plans: high limits and easy investing

Technically, there are two types of 529 plans -- prepaid tuition plans and savings plans. 529 prepaid tuition plans allow parents to pay for their child's college education in advance at today's tuition rates, which could save them truckloads of money down the road if tuition rates continue to skyrocket. However, not many states offer these plans anymore, and some of them are not currently accepting new enrollees. So we'll instead look at 529 savings plans.

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