Thursday, July 23, 2015

Investing In Your Child's Future

   Saving for your child's future isn't easy. But, there are a few programs out there that can help and make saving a bit easier. Let's face it, college isn't cheap and we would all love for our children to go to college. With that said, I've researched different types of accounts to help invest in educational expenses.

   There are a few different types of savings accounts:

   1. ESA (Educational Savings Accounts): This type of account is tax-free and allows individuals to deposit up to $2,000 per year for an eligible beneficiary. The funds must be used by the age of 30 for qualified educational expenses. All contributions to the account must be made by the time the child reaches the age of 18. Family and friends may contribute to this account, so make sure that the deposits don't go above $2,000 each year. This account is set up so that the funds may be used for private school, homeschool, college or any other school related expense.
  To find out more about an ESA please visit or

   2. QTP (Qualified Tuition Program)- 529 College savings account: The funds in this type of account can only be used for college. This program is operated by the state or educational institution designed to help set up funds for college expenses. This type of account is federal income tax exempt. There are two different types of 529 savings accounts; prepaid plans and savings plans.
   To learn more about a 529 savings account please visit
   Many different banks and financial advisors offer ESA's and 529 savings accounts.

   Upromise also has a couple of savings plans/accounts. Upromise by Sallie Mae is a company that helps families save for college. They help their members earn cash back for college; when you use your credit card on things you already purchase you get cash back (which goes into your desired savings account). Joining Upromise is free and is a great way to save using one of these plans:
   1. 529 plan
   2. High yield savings account
   To learn more about Upromise and what they offer please visit Upromise

Have you started saving for your child's future? What type of account would you recommend?