Saving for college is smart for your family's future and 529 plans are worth studying. Plan earnings are tax free if used for qualified education expenses. And plans can be set up for children, grandchildren, even yourself. And signifcant contributions can be made by you, family members, or friends. Money put into a 529 savings plan and its earnings can be used for undergraduate and graduate costs at any accredited college or university including tuition, fees, and room and board. It can even be used for books and a computer. A 529 plan is an investment with earnings based on the performance of the stock market. They're similar to mutual funds with the offerings usually being a mix of stocks and bonds. But there are considerations. If the money isn't used for qualified education expenses you face a withdrawal penalty on the earnings and plan earnings will be taxed at your normal income tax rate. Money in a 529 plan can also have some effects on financial aid. Saving for college is an important financial decision. One that can pay off big time for your family. So make sure to do your homework on 529 plans and check with a financial advisor on plan options, risk levels, and fees.