There are many different ways to fund your child’s future college education. One option is to contribute to a Coverdell education savings account. These accounts are tax-advantaged, but not everyone can contribute to them. You must earn low income to qualify for them, but your child’s money will grow tax-free and may be eligible for state tax benefits as well. The amount you contribute will depend on the type of account you choose, but if your family qualifies, you can choose to contribute a certain percentage of your income.

529 plan is tax-advantaged investment plan

You can invest in a 529 plan if you live in the United States. Anyone with a Social Security number and a Taxpayer Identification Number (TIN) can open a 529 account for their child’s education. Although most 529 account savers are parents, friends and family can open accounts as well. You can also open a … READ MORE ...