Saving for your children's college education is one of the most important financial tasks you will ever undertake. Luckily, you have plenty of savings options, most of them with tax advantages designed to encourage you to invest in your children’s future.
State-Sponsored College Savings Plans
Both 529 and prepaid-tuition plans offer great tax advantages, but that's where the similarities end.
Coverdell Education Savings Accounts
You get more control over your investments, but the amount you invest is limited.
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Roth IRAs
These retirement-savings accounts can serve as a fall-back fund for paying the college bill.
U.S. Savings Bonds
There are tax advantages, but not for everyone.
Save in Your Child's Name
You manage the account for your child, but you can't take the money back.