Educational Savings Techniques
How to fund college the smart way — tax-advantaged accounts, gift tax rules, and financial aid trade-offs.
529 PlansCoverdell ESAUGMA/UTMAEducation Savings
The right account can cut your college bill by tens of thousands of dollars.
✓529 plans grow tax-free and withdrawals are tax-free for qualified education expenses — the most powerful college savings tool available.
✓Coverdell ESAs allow more investment flexibility than 529s but cap contributions at $2,000/year with income limits.
✓Custodial accounts (UGMA/UTMA) offer no tax advantage and can hurt financial aid eligibility more than parent-owned accounts.
Unlock the full breakdown: contribution limits, gift tax superfunding, financial aid impact by account type, Roth IRA as a backup strategy, and the exact decision framework financial planners use.
Upgrade to Golden — Unlock Full NotesFor educational purposes only. Not financial advice. CFP® is a registered trademark of the CFP Board.