Setting aside funds for your childrens' education now begins right after a child is born. College tuition fees are rising, grants and scholarships are insufficient and inflation is outpacing savings. Under these conditions, federal and state governments have combined to introduce tax free savings accounts like the state 529 plans which allow you to grow money faster for the specific purpose of education funding.

In this section, we discuss the merits and disadvantages of these educational funds, alternate savings vehicles and outline techniques and strategies for calculating your childrens' exact educational funding requirements at a specific point of time in the future.