I started saving when the kids were in pre-school with prepaid college tuition credits through the state of OH. The way it works is, you pay for college credits at a very low price based on their age and then when you cash them in, the price per credit is based on today's prices. It is backed by the state of Ohio. I was the purchaser and my sons were the beneficiary. They are then taxed at the beneficiary's tax rate. Since the boys only earn a small amount of money throughout the year (basically it is considered poverty level) it is taxed at their rate. My oldest is a senior at Miami University, OH and the other one just got accepted there for the fall. For Ohio residents that want more info, call 1-800-afford-it or check out the website, www.collegeadvantage.com Good Luck. I figure when they graduate, it will be like winning the lottery for my hubby and me.