How to start a college fund for kids?

If you’ll need the funds soon, you’ll likely want to consider scaling back on the risk,” Wood says. Another way to start a college fund for kids: You can buy savings bonds digitally from the Treasury at TreasuryDirect.gov. They're no longer issued in paper form.

Can a child invest money in a college account?

Your child will legally be able to use the money in the account – for college or anything else – when they turn 18. There's no limit on what you can invest, and of course, the money doesn't have to go toward college.

Are college savings plans tax-friendly?

The savings plans, usually sponsored by state governments, encourage saving for future education costs. They often are tax-friendly in the sense that many states will let you deduct your contributions from your state income tax, and when you withdraw the money for college, the money won't be taxed.