Financially protecting your child's college education.

With college and university costs rising out of control and financial markets slowly recovering from near-fatal disaster, there are a few investment plans that are designed to trim college costs--if properly managed. New parents are listening to their financial advisors and socking money away into the popular 529 college savings plan, named after Section 529 of the IRS Tax Code. This section helps to ease the financial burden of paying for a child's college education. Parents can either lock in the price of a child's future tuition by prepaying at today's rate or make account contributions to an investment program for a child's qualified higher education expenses (such as tuition, tees, room and board, books, and supplies). There is a penalty for unqualified withdrawals.

Next month, BLACK ENTERPRISE will help you get the most bang for your buck by showing you the elements of a 529 plan and how it works in various states. Once you understand the concept, you can manage it more effectively. Too many parents believe that investing in a 529 college savings plan alone is enough to cover a child's future tuition. Unfortunately, they don't understand that the inherent risk involved in any investment plan lies in the uncertainty of the financial market. We will also suggest a few safe funds to invest in if you are concerned with the mutual fund scandals.

So which college savings plan is right for you and your family? Read next month's edition and decide.