College Saving 101

The kinds of investments that can help you accumulate a college nest egg are the same that can help with other investment goals. But because you need a plan designed specifically to pay for college education, there are a few twists and turns to take into account.

Any plan you set up should be easy and economical to fund on a regular basis. Here are several options that fit the bill. Plus, we'll explain the tax breaks Uncle Sam offers when you're paying tuition.

State-Sponsored College Savings Plans
Both 529 and prepaid-tuition plans offer great tax advantages, but that's where the similarities end.

Coverdell ESAs
You get more control over your investments, but the amount you can invest is limited.

Zero-Coupon Bonds
This investment offers a predictable payout to coincide when college bills come due.

U.S. Savings Bonds
There are tax advantages, but not for everyone.

Roth IRAs
This retirement-savings account can serve as a fall-back fund for paying the college bill.

Tax Credits for College Expenses
Uncle Sam helps you defray some of the costs of getting a higher education.