Compare your education savings options.
Deciding how to save for your child’s education can feel complicated. There are many types of savings accounts and investment plans, and each has its own pros and cons.
Take a look at our comparison table to help you make the right choice for your family. In most cases, “qualified education expenses” generally include tuition, fees, room and board, computers and software, textbooks and other education-related supplies.
- A CollegeAmerica® 529 education savings plan, Coverdell Education Savings Account (ESA) and UGMA/UTMA (Uniform Gifts/Transfers to Minors Act) are three popular ways to save for education.
- There are advantages and disadvantages to consider, including tax benefits, qualified expense withdrawals and who controls the account.
- As account owner, you control the account and how the money is spent in a 529 savings plan.