Ways to Save for College

Simple and effective. The money is yours with no other stipulations if your child decides not to attend college or uses less money than expected. There are no income-splitting tax benefits, but you can give the money to your child as a gift and have them pay the tax at their rate.

This should really be a last ditch effort to pay for your child’s tuition. This may be better than relegating your child to a local technical college, but not by far. This option should only be considered after all other possible options have been researched and realized. Please read through our other articles to locate better ways to save for college.

Setting up a custodia account in your child’s name is one of many simple ways to save for college. The account will be taxed at the child’s rate unless they are under fourteen years of age. If they are under fourteen, kiddie tax may apply.

One downside of this approach is that a child does gain full access to this account at a young age (18 in most states).