529 Plan
A 529 plan is a tax-advantaged account for education costs, run by individual states. Money grows tax-free and withdrawals are tax-free when spent on college — and unlike custodial accounts, you stay in control; the kid can't cash it out for a sports car at 18. Many states add a tax deduction for contributing.
Example: $300 a month from birth, compounding at 7%, grows to about $130,000 by the first day of college.
Related
Educational content only — not financial advice.