<p>One thing to think about: Money saved in a child’s name is tapped at a higher percentage during FA reviews than money saved in a parent’s name. So start a small fund for the child, but keep most of the money in your name since even the FAFSA formula (for colleges) has some degree of asset protection built in (i.e. they don’t expect you to spend 100% of your savings to fund school). Living frugally and automatic payroll deductions into a savings account separate from our household account has been the key for us funding two children. </p>
<p>Good luck.</p>