529 Plans- Utah Educational Savings Plan

After months of socking away money in a brick-and-mortar bank earning zilch in interest (really pitiful!), I wised up and finally opened Goose's 529 college savings plan. I know, I know, it's quite a ways away but it's going to take a lot to fund her education. If you want to see some really scary numbers, plug your child's info into this calculator. Yikes! J-bird refuses to even look at the numbers.

Investing in either of our state's plans provided no tax benefit to us so I expanded the search and discovered Utah Educational Savings Plan. Utah's plan (UESP) is highly rated in terms of returns, investment options, and low fees.

Why a 529 plan may be right for your child:

• 529 plan balances are counted as assets of the parents, not the students, on the FAFSA form so they don't affect your expected family contribution nearly as much as a savings account or other account in the child/student's name.
• 529 plans can be used for several different types of advanced learning, including vocational school. 
• The beneficiary of the 529 plan can be changed to another family member without penalty. 
• Earnings are not subject to federal taxes and are typically not taxed at the state level either. 
• You can ask family and friends for money for college instead of toys (or so many toys) at birthdays and Christmas. UESP even has a form on their website-- those giving to the 529 as a gift can submit the top part of the form with a check, and keep the bottom part to present to the child for birthday, Christmas, etc.
• Opening a 529 plan account helps with goal setting. In our experience, I've found that when we set up an account and establish a concrete monthly savings goal, we are more likely to follow through. Goals matter.

For additional information on 529 plans, see this Clark Howard article on the subject.

Don't forget-- saving for your own retirement takes priority over saving for your child's education.
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What ideas do you have for saving for your child's education? Are you planning on paying for it all, or just hoping to lessen the student loan burden?