When you think about college for your children, you might either hold out hope that they'll earn a full scholarship or consider opening a savings account on the chance that they could need some help. Unfortunately, neither of these options may be sufficient when it comes time to enroll in a university and pay that first tuition bill. According to the College Board, the average cost of a year of college in 2016 was $9,650 (tuition only). Here are five of the best options for smart college savings.
529 College Plans
A 529 plan is a state-sponsored investment account that is designated for college expenses. The advantage of these plans is that they allow parents to save tax-free dollars for a child's future education expenses. The funds in the plan are invested differently according to the plan and the child's age, so you should shop plans carefully. The annual fees also vary by program.