After you've paid off all debt (except for your home), saved an emergency fund of 3-6 months of expenses, and started putting 15% of your household income into retirement investments, you're on Baby Steps 4, 5, and 6. Remember, these steps are done in order, but at the same time. Baby Step 5 is where you begin to save for your children’s college expenses. It IS possible to graduate completely debt-free! Saving now will put your kids ahead of the game when they're ready to start college. If your kids are already in high school, it’s not too late! You’ll just need to set aside your money a little faster. Two smart ways to save for your children’s college when they’re still little are 529 college savings plans or ESAs (Education Savings Accounts). These options will save you a bundle in taxes and are specifically designed for college expenses. Before you choose either option, do your homework! Depending on your income and what state you live in, a 529 might be better than an ESA. Just l...