College Savings: Three Accounts to Consider

When I started saving for my children’s education, 529 Plans weren’t yet introduced. So I saved within a UTMA/UGMA and then a Coverdell Education Savings Account. Each type of account seemed to have advantages and drawbacks. I wanted to save more for college in a designated account. But I had heard (more than once) that parents can’t borrow money for their retirement in the way that children can borrow for their education.

Eventually I came to realize that just because my retirement is a financial priority doesn’t mean I couldn’t set aside some money for my kids’ education. Even if though I didn’t save for the entire college experience — tuition, fees, room, board, books, study abroad, etc. — what I tucked away was extremely useful.

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