College savings plans can now be set up so that the money is invested in mutual funds and grows tax deferred.
An ESA is another savings program for educational expenses which can be set up for kids under 18 years of age. The annual contribution limit is $2,000 per child.
Saving for college should start when your little one is still in diapers!
There’s lots of books about how to raise kids but there isn’t much about how to plan financially for a baby.
When ESA’s were created they were named Educational IRAs and limited to a $500 contribution. With a name change they became the Coverdell Education Savings Accounts.
There are certainly some financial obstacles you may face as you live life.
So when should you start saving for college? When the kid is in diapers!
So when should you start saving for college?
If your kiddo is in kindergarten you still have time to save for college.