Although we do not have children yet, I know that when we do we will start putting money away for college right away. However, there are different ways of doing this – and luckily my a newsletter from TRowePrice showed up to tell me some of the differences between a typical 529 plan and an ESA. While they are both to be used to save for future education costs, there are some differences that could make you choose one over the other. Let’s take a look…
Typical 529 Plan:
Typical ESA Plan:
So there you have it, the basic differences between a 529 plan and an ESA. Sure, its just the basics and there are tons of plans out there to pick from, so be sure to do your homework before deciding on the plan to set up. I believe we would probably consider a 529 as our children would be attending public school and we would like to contribute more than $2,000 per year, but we shall see. What about you? Have any experience with saving for your child’s education? Let us all know about it in the comments!