Guides / Saving for the future
Other ways to save for your kids' future
Savings accounts, custodial accounts and how they compare.
A 529 plan isn't the only way to save for a child. The right mix depends on what the money is for and how much flexibility you want.
Options
- A regular savings account in your name: fully flexible, no tax benefits
- A custodial account (UTMA or UGMA): belongs to the child, who controls it at the age set by state law
- A Coverdell education savings account: tax-advantaged for education, with lower contribution limits and income limits
- Your own retirement savings: some families prioritize these, since students can borrow for college but parents can't borrow for retirement
Financial aid
How savings are counted on the FAFSA depends on who owns the account. Money in the child's name usually counts more heavily than parent-owned savings. Check StudentAid.gov for current rules.
General information, not investment or tax advice. Family Nickel Saver isn't paid by any bank, plan or brand.