One of the best ways to save for college is with a 529 College Savings Plan.

Your savings has a chance to compound faster in a 529 than in other types of accounts earning the same interest rate because of its tax advantages. No federal income taxes are ever due on earnings in the 529 if you use the money for qualified higher education expenses. That includes tuition, room and board, books and many other costs.

Your parents, guardians, grandparents or anybody else can open a 529 account with you as beneficiary. With most 529 plans, many different people, including you, can contribute. That helps build your account faster.

Looking for ideas on how you can contribute to your college savings? You can save money from summer and after-school jobs. When your birthday comes each year, you can deposit any cash gifts that come your way. You might even tell your family you’d prefer a contribution to your college fund over other gifts.

And don’t worry. Savings in a 529 won’t hurt your chances for financial aid.

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