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… before you begin: Start a 529 Savings Plan This is a way you and your parents can save money for college by placing a monthly amount or lump sum into a savings plan that slowly grows over time while also providing benefits such as income tax incentives. Parents usually start these while their … your college tuition, they may be eligible for a tax credit. The American Opportunity Tax Credit can give parents up to a $2,500 tax credit for each child they have in college where they pay tuition, fees, books, and living expenses. Find out more …