One day, your little one will be all grown up and heading for college. Make sure that your whole family gets on the same team when saving for higher education. Here are some strategies to building a financial game plan so that your child can get his degree without worrying about money.

Whether your children are toddlers or in middle school, chances are that you're concerned about paying for their college educations. Fortunately, it's never too late to start saving for the future, and there are many options available that can work for your budget. In fact, there are so many, that making the right choice can be a challenge.

529 College Savings Plans

These are state-sponsored savings plans that can be used for college expenses. The biggest advantage of a 529 College savings account is that the money remains tax free when used for qualified distributions. Once your child begins his higher education, and you withdraw the money to pay for tuition, there are no federal tax consequences and, in some states, there are no state taxes, either. If the beneficiary decides not to continue his education after high school, you must name another beneficiary, or pay a 10 percent federal tax penalty. The only drawback is that you have no control over where the money is invested; the plan administrator makes all the investment decisions.

Another choice is a Prepaid Tuition Plan. It's similar to the college savings account, with one major difference: it locks in the tuition at current rates at specific colleges.

Education IRA

The Coverdell Education IRA is a self-directed plan, with a wide array of products available. You can choose any type of investment products, including stocks, bonds, and mutual funds. It's also available for tuition for elementary schools, high schools, and post secondary education. The earnings grow tax-free, as long as they're used for qualified education expenses.

The problem with these accounts is that the contribution limit is low, at a maximum of only $2,000 a year per child, and it's not tax deductible. On top of that, there are income limitations. Like the 529, there's a 10 percent penalty for early withdrawal. Once the child reaches 18, no further contributions are allowed. And if there are any funds in the account when the child reaches 30, they must be liquidated within 30 days.

Savings Bonds

The old-fashioned way to save has very low risk, but also a very limited upside. The tax savings are slim, too, unless you choose Series EE bonds or Series I bonds. If you want to take this path, it's a good idea to discuss the deductibility with your tax advisor.

These options all depend on what kind of education you'd like to provide for your children. The more you know, the better prepared you'll be for the challenge. Kids grow up as quickly as college costs rise, so make sure that you take action soon.