. >> reporter: jason and caroline miller know the key is starting early and saving often. >> we have a 1 year old. we started the plan when she was 6 months old. we have a boy coming august 25. >> reporter: they make regular deposits into a 529 college savings plan that has garnered much attention in recent years especially for tax benefits. >> all of the contributions and earnings come out tax free for you for tuition fees and books and equipment. that is probably the key reason why families have invested $180 billion today in them. >> reporter: nearly every state offers a 529 plan. you may get a state tax deduction on contributions to that plan. you can pick any 529 planet that is best for you based on your risk tolerance and how much you need to save. anyone can contribute to a 529 plan for a child or another beneficiary. >> very good. >> reporter: the millers set up a 529 plan for their daughter, clara. that can change. >> my daughter may get a scholarship. if that happens that money designated for her would be rolled to the second child. if the second child were to also get a sc