Saving for College

If you figure on your kids' four years at the state college costing around $150,000 (apiece) by 2010, you may come up a little short. A college fund can be a good thing, and the earlier you start one, the better. Some people may decide to just put money aside in a regular savings account, but there are tax-free investments that can help limit the time your child spends waiting tables while earning that all-important degree.

The Coverdell Education Savings Plan, which was once called the Education IRA or the Education Savings Account, is one way to save

for your child's education. If your Adjusted Gross Income (AGI) is under $180,000, you can put $2,000 a year into this account. The money can be used for college tuition, or for tuition at any school—private elementary and high schools. It can cover costs for transportation, computers and school uniforms, too. It may even be used for extended daycare costs. And, if you're a single adult earning less than $95,000 a year, you can have a Coverdell Account for yourself.

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How to stick to a household budget
and have extra
money for investing

1. Customize your budget with your current needs, wants and future goals in mind.

2. Try to think if your budgeting plan as a "spending" plan rather than penny pitching.

3. Sit down and rationally discuss budget goals and spending limits with your spouse. You are bound to disagree somethere, but it important to take the time to find common ground.

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