You may want to save for a child’s education. While Schwab recommends saving for retirement before saving for college, personal priorities should be your guide. But remember—while your child may be able to get a loan for college, you can’t get one for retirement.
Tax-advantaged savings plans.
529 college savings plans.* Money can be withdrawn tax-free to pay for college expenses like tuition, books, supplies and, in some cases, room and board and computers. Coverdell Education Savings Accounts. These accounts may be used for qualified elementary, secondary and college education expenses. You can put away $2,000† each year per child (if eligible); potential earnings grow tax-free, and distributions for qualified expenses are free of federal income taxes. Income limits apply.
