education savings plan

An education savings plan is a plan that is used to allocate the funds necessary to pay for tuition & expenses for a student's college education. Unarguably the most notable education savings plan is the 529 savings plan. In a 529, someone, usually a parent or grandparent, places funds into the plan towards a beneficiary of their choice, the future student. By using an education savings plan such as the 529, the money saved for tuition will also not be taxed. The 529 savings plan comes in two forms - the savings plan and the prepaid plan. In a prepaid plan, the investments made into the account are received with the understanding that they will grow over the years, and do so in accordance with tax inflation. A savings plan, on the other hand, involves purchasing an actual investment such as a mutual fund, one that varies and causes the savings to vary with it. However, circumstances may change slightly depending on the state where a 529 is received. Other than the 529 savings plan, education savings plans can also be seen in programs like Upromise and Coverdell.

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Coverdell Education Savings

A Coverdell Education Savings Account (also known as a Coverdell Education Fund) is an investment account whic...
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529 College Plan Savings

Are you concerned about your ability to pay for your kids’ college education? Maybe it’s time to take a look a...
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EE Series Bond College Savings

Series EE savings bonds are one of the safest savings products available. The series EE bond yield is currentl...
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Series Savings Bond Types: Advantages and Disadvantages

Savings bonds have been a staple in American living for decades. These may be one of the safest investments ...
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College Savings Bond

College savings bonds are tax-exempt, zero-coupon bonds issued by a state to help families of that state save ...
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