Learn more about the following tax-advantaged ways to save for your child's college education. Thinkstock By the editors of Kiplinger's Personal Finance Updated January 2015 Saving for your children's college education is one of the most important financial tasks you will ever undertake. Luckily, you have plenty of savings options, most of them with tax advantages designed to encourage you to invest in your children’s future.State-Sponsored College Savings Plans Both 529 and prepaid-tuition plans offer great tax advantages, but that's where the similarities end. Coverdell Education Savings Accounts You get more control over your investments, but the amount you invest is limited. Roth IRAs These retirement-savings accounts can serve as a fall-back fund for paying the college bill. U.S. Savings Bonds There are tax advantages, but not for everyone. Save in Your Child's Name You manage the account for your child, but you can't take the money back.