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A 529 savings plan opened by someone other than a child's parents is good, because that money will not be counted against a family's financial aid application. So instead of giving a child cash at birth, it may be more beneficial to open an account for him or her. It is also important to remember that a child doesn't need $10,000 in his or her name to start saving for college; 529 plans can be opened with any amount of money. Even the smallest bit can help, and it will grow over the years. According to Sallie Mae, the nation's leading student loan company, even moderate regular contributions can add up to big savings over time. A family who saves $4 per day for 18 years, for example, will have more than $26,000 by the time their child is ready to head off to college. Robinson says the most important thing to remember is that it is never to soon to start thinking about a baby's education. "Like any other investment vehicle, history shows us that you should start saving as early as you can."
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