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Should a baby have a college savings account?

With a healthy college fund, your child won’t need to be dependent on financial aid, nor will they be forced to take out crippling student loans. There are a number of different types of college savings accounts for your baby, including 529 plans, Coverdell ESAs, Roth IRAs, and traditional savings accounts.

Should I open a 529 college savings plan for my Baby?

Considering opening a 529 college savings plan for your baby can be a great way to save toward their eventual college education costs. The money you put in a 529 plan can grow tax-free — whereas you might have to pay tax on gains from other types of investments.

Can a parent save for a child's college education?

Parents can even save for a child’s college education before the child is born, either by opening a 529 plan or saving the money in a taxable account. Let’s explore these options in more detail. When you open a 529 plan, you must select a beneficiary for the plan.

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