How do I save money for my child's education?

Set a Goal: Decide how much you want to save and what type of education you want to provide for your child. Having a plan makes it 2x more likely that you will meet your goal. Use the America Saves Pledge to help create that plan. Open a 529 Savings Plan: A 529 plan is a tax-advantaged savings plan specifically designed for education expenses.

What is a college savings plan?

This is a college savings plan strategy typically used by high-net-worth families to provide tax-advantaged savings for multiple goals, including higher education, according to Bryan Bentley, a financial advisor with Talon Wealth Management based out of Roseville, California.

Are education savings plans tax-free?

Education savings plans offer tax-deferred growth, and withdrawals are tax-free when used for qualified education expenses. These plans remain under the control of the donor, usually a parent. Prepaid tuition plans enable account owners to lock in current tuition rates for future attendance at selected colleges and universities.