Education savings plans offering tax breaks ease the burden of saving for your child's college education.

Of course your child will be a star athlete and scholar in just a few years. But what if little Johnny turns down the full ride to public UCLA because he wants to attend private USC instead? There's no harm in having a back-up plan, just in case the big scholarship doesn't pan out. Start by getting the download on your three primary college savings options.

Coverdell ESAs

Coverdell ESAs are similar in structure to Roth IRAs: You contribute after-tax money into the account, and decide how that money is invested. Annual contributions to a Coverdell account are capped at $2,000 per beneficiary-but the cap may be lower for higher income families. Once your child reaches the age of 18, no additional contributions are allowed.

Earnings within the account and qualified withdrawals are tax-free. Qualified withdrawals include college-related expenses, as well as tuition or for a private elementary or secondary school education. Lastly, all distributions must be made by the time your child turns 30. If they aren't, you can avoid the taxes and penalties by transferring the money to a family member's Coverdell account.

The 529 college savings plan

If you're looking for a plan with higher contribution limits, try the 529 college savings plan. Contributions grow tax-deferred, and if they're used for qualified education expenses, you won't pay any taxes on withdrawals. Lifetime contribution limits vary by state, ranging from $100,000 to $300,000.

The investments held by the 529 fund are selected and managed by a program administrator. Since some plans will perform better than others, keep an eye on the value of your account. If the returns aren't there, you might consider transferring the money into another plan.

Leftover 529 funds can be used by your child for graduate school, or they can be re-assigned to another beneficiary. The money can also be removed from the account, but you'll pay income tax on the earnings plus a 10 percent penalty.

Prepaid tuition plans

Funds contributed to a prepaid tuition plan are used to buy educational credits at today's tuition rates. Considering how rapidly tuition costs are increasing nationwide, this investment could produce a considerable return by the time your child enters college. The primary drawback is that prepaid tuition credits cannot be used at any school; the plan you select largely dictates the school available to your child. There's a prepaid tuition plan offered by a group of private colleges, but most tuition plans are geared towards in-state, public universities.

With respect to financial aid, monies held in any of these accounts will reduce your child's eligibility for financial aid by up to 5.64 percent of the account value.

Whether your child decides to be a Bruin or a Trojan, he deserves every financial advantage you can provide. Pick the plan that suits your family best, and start saving today.