Education Savings Accounts

As an educator, I am cognizant of the rapidly escalating cost of higher education. It is impossible to accurately predict what a college education will cost 19 years from now. However, it is safe to say that it will not be any less expensive than it is currently.

In my early college days, tuition at a certain state university in Virginia was $220 per semester. Today it is ten times that with another $700 in fees per semester. Private colleges are much higher with 4 years at many topping out well over $100,000!

Well, how can we help our grandchildren start adult life debt free? You can always encourage them to work hard in high school and earn a scholarship. My grandbaby's mother earned a tuition free ride at the above referenced university. However, there are other ways. But they need to start now.

Educational savings accounts are one way. I just received something in the mail about them. It seems that you can start a Coverdell ESA for a child or grandchild. You can put in $2000 per year - tax deferred. If withdrawals are used for authorized educational expenses, there is no tax.

Do you think this is a good idea? Has anyone done this? Does anyone have helpful advice?

I better start saving so my grandbaby will have some college funds!