, which are named after Section 529 of the Internal Revenue Code, are offered through states to encourage people to save for college.The advantages of the accounts are hard to overstate.And if you start to contribute to a plan at your child's birth, about a third of your savings goal could come from investment earnings alone, according to calculations by Mark Kantrowitz, publisher ofAim to save $250 a month for an in-state public college, he said, or $550 a month for a private college.
It might be hard to get your 8-year-old excited about such a far-off goal. "Delayed gratification is a difficult concept for adults, much less kids," Kantrowitz said. Still, explain to them that you're saving to help them fulfill their dreams, whether that's to become an astronaut or to save the planet.If you want to start building your child's credit history, you can make him or her an authorized user on your card.
"Handled well, it can really give the kid a leg up, credit-wise," said Matt Schulz, chief industry analyst at Comparecards.com. Different banks and credit card companies have different minimum ages for authorized users, Schulz said. "Parents should be sure to check that before setting their kid up," he said.
Don’t give them the cash?
Kids will be kids
Too late, downloadable content got the best of them