Saving for college

HELP ME CLARK!

SID:
My mother gave me $2,000 to invest for my children for college. My children are 14 and 10. What should I invest the money in?

CLARK:

HLN's Money Expert Clark Howard

In a 529 account. 529 is a special tax-free account for college.

There are many many plans and each state will generally sponsor its own or even several. But you don't have to put your money in your own state plan, and in many cases you shouldn't.

I have a guide on 529 plans at cnn.com/clarkhoward, and you should look at my guide to make a selection.

If your state is on either my Dean's list or my honor roll list, go into your state plan. But if your state is not listed, then go into one of the Dean's list plans.