There is a bewildering array of ways to save money for college savings, each with its advantages and disadvantages. The main options are custodial accounts (also called UGMA and UTMA accounts), Coverdell Savings Accounts and two types of state-sponsored 529 plans.

When comparing these options, consider how much you can put in, the tax benefits, income limits (if any), investment options, impact on financial aid and what happens to the money if the child doesn't use it for college.

You can open more than one type of college-savings account, but you can't use money from a Coverdell account and 529 plan to pay the same college expenses. You also can't use expenses paid with money from a Coverdell or 529 plan to claim the Hope or Lifetime Learning tax credits.

For details, read the individual FAQ on each type of account, visit http://finaid.org/savings/ or go to www.irs.gov and search for Publication 970, Tax Benefits for Education.