Also known as qualified tuition plans, “529s” are tax-advantaged savings plans that offers tax-free earnings growth and tax-free withdrawals when used to pay for qualified education expenses. Tax treatment at the state level may vary. You may also benefit from tax savings by making qualified contributions to the plan.

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program.

An ESA is a trust or custodial account that offers tax-deferred earnings growth and tax-free withdrawals when used to pay for qualified education expenses for the designated beneficiary of the account. Contributions are not deductible and the total contribution per beneficiary in a given year is capped at $2,000.

All forms of funding, including scholarships, grants, loans, and work-study programs that help students attend and pay for higher education in the United States. A student may qualify for financial aid on a need- or merit-based basis, but 100% funding isn’t guaranteed.

UTMA and UGMA accounts enable parents to save, invest, and maintain full control of money for their children without creating a trust. These options have limited tax benefits, but can be used for any expense, offering more flexibility than other options.

A trust offers the greatest flexibility in how money and other assets are managed and distributed, but doesn’t come with education-related tax benefits. It can be a useful tool for parents who want to set provisions as to how money is spent and under what conditions.