The way to fund your child or children’s education is early and with tax advantages. The most powerful advantage any parent can have in funding education costs, specifically the expense of college, is an 18-year head start. The power of time is your number one ally when starting early. $100 invested for 18 years will almost certainly be worth much more than $100 invested for one year, so don’t wait. The most advantageous vehicle or program for that investment is a 529 College Savings Plan. Many states offer a tax incentive to invest in their state-sponsored 529 plan, meaning that some amount of your annual 529 contributions may be deducted off the income reported on the state level at tax time. These plans will offer a variety of mutual fund investments to select from as well simpler age-based options. However, the biggest and most powerful advantage of the 529 plan itself is the ability to take tax-free distributions to use toward college expenses such as tuition, room and board, books, etc. You fund the account with after-tax money (though your state may allow you to deduct the contribution off your state income taxes,) your funds grow in the market until your child goes off to college at which point you are able to take distribution of the initial principal invested and the growth achieved in the market tax-free to be used for college expenses.