Are you saving up for your child's college education? That's obviously of huge concern to most parents, given the spiraling costs of tuition, and one of the most common reasons that people turn to a financial advisor for help. A recent survey of people saving for college, though, found that most people aren't taking advantage of the new vehicles specifically designed for that purpose.
Of those who said they were saving for a college tuition, 42 percent said they were using a simple savings account or CD for that purpose. Another 27 percent were using their checking account. The same amount, 27 percent, said they were making use of the 529 plans designed especially for college tuitions, with built-in tax advantages.
Interestingly enough, those using 529s have, on average, saved a greater amount than those simply using savings accounts, by a margin of $2,331 to $2,145. That's just a drop in the bucket, though: The average person said they hoped to put away $39,000 for each child's education.
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