Saving for college during a recession

EAST PROVIDENCE, R.I. (FOX Providence) - Trying to save for the future is harder than ever right now, especially for things like higher education.

Rhode Island State Treasurer Frank Caprio says the first thing you can do to start saving, is have a plan.

"If there's a baby on the way, start, today. Make a plan, whether it's $10 a week, or $50 a month. Whatever the plan is, stick to it. And we have a very powerful tool in the CollegeBound Fund, which is the state's 529 plan, where the money can grow tax-free and when you take it out, it's tax-free also. So, it's, the best tool available," said Caprio.

There's also some matches out there for those whose income is the average in Rhode Island, or a little bit below average.

"You can qualify for a dollar for dollar match or even $2 for each dollar match, so it's worth looking into. Go to the CollegeBound Fund Web site, and read the details," added Caprio.

There's also other ways to save.

"You want to look at your household budget and say savings should be a part of it. And in today's climate, people are saving more. That's one of the silver linings of this recession that we're in. People are looking at what they're spending their money on and making decisions in a way that benefit their future and their family's future. Have a plan, stick to it and you'll wake up one day and be glad that you did, because the cost of college is not going down. It's going up."

It's not too late to take advantage of The CollegeBound Fund Web site, You can benefit from starting to save immediately.