Research college savings

Overview

It's never too early to start thinking about how to pay for college! Understanding savings options now gives your family more time to prepare.

529 College Savings Plans

What Is a 529 Plan?

A tax-advantaged savings account specifically for education expenses. Money grows tax-free and withdrawals for qualified expenses are tax-free too!

California's ScholarShare 529

• Website: scholarshare529.com
• Minimum to start: Just $25
• Maximum contribution: Up to $529,000 per beneficiary
• Can be used at: Any accredited college nationwide

Benefits

• Tax-free growth
• Low impact on financial aid eligibility
• Can be used for tuition, room & board, books, and supplies
• Family and friends can contribute through Ugift

Other Savings Options

• Coverdell ESA: Another tax-advantaged option with $2,000/year limit
• Custodial accounts (UTMA/UGMA): More flexible but count more against financial aid
• Regular savings: No tax benefits but completely flexible

CalKIDS Program

California provides free seed accounts for eligible students! Check your eligibility at calkids.org.

For Families

Even small contributions add up over time. Starting early is more important than starting big!

Resource

Saving for College Guide