529 Plan: A tax-advantaged investment account designed as a way to save for education expenses. You can use 529 plans for K-12 tuition, in addition to college and graduate school. You’re limited to the investment options offered by the 529 plan you choose.
Coverdell/Education Savings Account (ESA): A tax-advantaged account that you can use for any level of education. You can only contribute up to $2,000 per year, per beneficiary, but you may not be able to contribute if your income is too high.
UGMA (Uniform Gift to Minors Act) and UTMA (Uniform Transfer to Minors Act): Specialized custodial accounts that can be used for a child's general benefit. These accounts may be used to cover a broad range of expenses, not just educational expenses. Keep in mind: Since custodial accounts are considered assets of the minor, they may limit financial aid eligibility.