Other Savings Tools
Though not as popular as the three main types of investments, the government-issued savings bonds series EE are geared towards education. These bonds are purchased at a discount and accumulate interest over the years to maturity. The proceeds, both principal and interest, are tax free if used for educational expenses. Anyone can purchase these bonds for a child.
Upromise, a totally free savings tool, allows parents, grandparents, and even friends to accumulate savings by purchasing certain items in grocery stores, online, in restaurants, and more—and accumulate free money towards a child's education expenses. While Upromise may only provide for a small amount, it could pay for items such as books and supplies. You can check it out at www.upromise.com to review the details and sign up.
Different investments work for different families. The most important goal and the first step towards your educational financial security is to create a plan to save for your child's future.