Analysts predict that a child born today (2008) will have to spend $200k for a state college education and as much as $400k for a private university.

This is insane! Who can afford this? Even counting on inflation I don’t see how this is possible. Demand will go down and the prices won’t rise so dramatically over the years.

But… even if it costs between $50k and 100k starting to save for college now might be essential.
The best avenue for college savings is a 529 savings plan.

Some states offer a state tax deduction for using their state 529 plan, but if you make too much money that tax advantage is usually phased out. You don’t have to use your state’s 529 plan. So pick a state plan that allows you the most flexibility and allows you to invest in stocks that have the appropriate risk and growth that matches your investing style.

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