If you have kids, chance are pretty high you’ve heard of 529 college saving plans. Maybe you’re wondering which is the best? Well, here are the 3 best plans (as chosen by Money Magazine).
Interestingly, there’s no mention of the California 529 college savings plan, which seems to be advertising a lot these days. Hmm.. guess the good plans don’t have to advertise? 
Each offers good, low risk investment options and low fees.
Illinois BrightStart College Savings Program – Direct solid plan.
Managed by: Oppenheimer & Vanguard
Expenses: 0.20% – 0.63%
Low-risk option: Principal protection fund – UP 2.5% last year.
Ohio College Advantage Savings Plan
Managed by: Fifth Third, Pimco, Vanguard, and more
Expenses: 0.19% – 0.91%
Low-risk option: Fifth Third CDs (10 year CD yields 5%)
Utah Educational Savings Plan
Managed by : Vanguard and others
Expenses: 0.22% – 0.35%
low-risk option: FDIC-insured savings, 1 year CD yielding 1.9%
Just because your state isn’t on the list doesn’t mean you should overlook it. I use the NY 529 plan (http://nysaves.com) which offers comparable options to these, but also allows me to deduct the contributions from my state taxes.
A parents first financial step for kids should be the Monetta Young Investor Fund rather than a 529 plan. This fund has a kids-theme investment approach, a financial literacy component and free college tuition credit program. It has a low minimum investment($100)and good investment performance.