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The cost of sending children to college remains daunting, and annual increases in the price tag for higher education have outpaced the overall inflation rate for years. According to the College Board, yearly hikes in college costs during the past decade have averaged roughly 5%, while consumer prices in general have risen less than 3% a year.

But parents can take advantage of several college savings tools to help meet this steep challenge. Consider these five possibilities:

1. Section 529 plans: Section 529 plans, sponsored by U.S. states, encourage families to set aside funds for the future education expenses of beneficiaries. The contribution limit usually is at least $300,000. As long as certain requirements are met, your investment can grow without current taxes, and distributions made for qualifying college expenses—including tuition, fees, books, supplies, equipment, and room and board for full-time students—also are tax-free.