Ideally, the birth of a child should coincide with the birth of a college fund. Early investments can reap tremendous gains through the power of compounding. Every dollar saved now is a dollar that will not need to be borrowed in the future. So take action and save something no matter how small it seems.

Review the various college funding vehicles available, including Coverdell education savings accounts, 529 plans, and custodial accounts.

Decide on appropriate vehicle(s) using the following criteria:

• Contribution Limitations
• Control of Account
• Tax Ramifications
• Use of Funds
• Income Limitations
• Nonqualified Withdrawals
• Financial Aid Eligibility

Contribute the maximum to retirement accounts. Have money automatically deducted from paychecks and/or bank accounts. This will reduce the chance of jeopardizing the funding of your retirement.