Saving for College the Smart way - 529 Plans

Motley Fool writer Rich Duprey suggests an alternative to spending your “tax rebate” check from the government. Duprey points out that your $1200 can turn into $6,600 by the time your kid goes to college:

Put your kids through college
The way tuition costs have risen lately, you’re probably not going to be able to turn that $1,200 into enough to put Johnny through four years of higher education. The College Board says that the average cost of a private, four-year college is $23,712, up 6.3% from last year, while public colleges cost on average $6,185 a year. And that’s just for tuition and fees. Still, $1,200 invested in a 529 plan for 18 years at 7% interest is more than $4,000, while at 10%, you’ll get more than $6,600.

And that doesn’t even consider the tax benefits of the investment.