There are many ways to save and invest for education expenses, including:
- Education Savings Account (ESA), also known as a Coverdell ESA
- Custodial accounts under the Uniform Gifts to Minors Act (UGMA) and Uniform Transfers to Minors Act (UTMA)
- 529 Plans, of which there are two types:
- 529 Savings Plan
- 529 Prepaid Tuition Plan
They all have their own pros and cons... and the right choice for you may be a combination of more than one of them.
