CAROL COSTELLO, CNN ANCHOR: Time again for a little business buzz. Tuition keeps you parents up at night, I know that. What you don't know, though, can hurt you financially. Let's find out more from Carrie Lee who's live in New York. Tell us -- Carrie.</s>CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: OK, Carol. Well there are some tax advantage plans available for people, but a new survey from Alliance Bernstein Investment Research shows that the majority of parents aren't aware that some of these are available. We're talking about 529 Plans here, and these are basically college or higher education savings vehicles that can let people invest for college without paying federal taxes and in some cases, without paying state taxes on any gains. Now according to the survey, only 14 percent of U.S. families currently invest in these plans. Also, about 64 percent of parents and 65 percent of grandparents are not familiar with 529 Plans. The survey polled about 1,000 adults. These plans were started back in 1996. There's currently $25 billion invested in them. Again, according to Alliance Bernstein, if you invest in your child's college fund without the 529 Plans, then your investments can be taxed as regular investments under your tax bracket and this can penalize you thousands of dollars. Carol, the idea of a 529 Plan may sound overwhelming, but there are some financial pros who can help you pick the best one. You don't necessarily have to live in a state's plan to put your money there. So word to people who are looking for some savings ideas for college.</s>COSTELLO: And we sure appreciate it. Carrie Lee live from New York. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Most Parents Are Not Aware of 529 Plans