Q: Financially prepare for my kid's college, how ? What are different sources available?

When your little one is tiny and fits perfectly in the crook of your arm, your last concern may be how you are going to pay for his or her college education 18 years down the road. However, the earlier you take steps, the easier paying for your child’s future education will be.

Here are a few ways you can start:

1. Look for a savings plan.

Most governments have plans designed specifically to help you save for your child’s post-secondary education. Canada has the Registered Education Savings Plan while the United States has the 529 Plan to help parents save for college or university. Financial institutions, such as banks, may offer education savings plans as well.

2. Get help.

Financial planners and tax professionals are trained to help you save money. Enlist the help of a professional to begin a savings plan for your child’s education.

3. Encourage money gifts.

If your little one is a child who “has it all”, begin asking for cash gifts for birthdays and Christmas. Invest these gifts into a savings account.

4. Teach your child how to save.

Although you shouldn’t expect your 7-year-old to begin saving his or her allowance for college tuition, they may have to save their own money down the road to help with paying for their education. Create healthy saving habits while they are young.