It's never too early to start saving for college.

The more you save early in your child's life, the more impact it will have later. Even saving a little can help over the long run. Consider your savings a down payment toward college expenses, even if it won't cover everything.

How saving affects your child's chances of receiving financial aid

Although savings are considered in determining your eligibility for financial aid, the impact is minimal. Remember: financial aid is not guaranteed, but saving will guarantee that you won't have to borrow as much. The other advantage of saving is that it lets your money work for you, earning interest over time. When you borrow money, you're the one who has to pay interest. So, save to the extent you're able, apply for financial aid, and minimize borrowing.

There are a number of ways to save for college:

MEFA U.Fund — Massachusetts sponsored 529 College Investing Plan
MEFA U.Plan — Massachusetts sponsored Prepaid Tuition Program
Uniform Gift to Minors Act / Uniform Transfers to Minors Act
Coverdell Education Savings Account (Education IRA)
Traditional savings vehicles like CDs, passbook savings, bonds, etc.
Savings bond — EEE series

Use our Savings Comparison Chart (PDF) to compare the pros and cons of different ways to save for college.