Saving for college has always been one of the top struggles for parents. Increasing college costs, inflation, and higher living costs are not making it any easier. Today, there are many options for parents who wish to start saving for college with the main two being to open a custodial savings account or to start up a 529 savings account. The main difference between these two types of savings accounts is that the 529 is strictly for saving for education. If the child decides to forgo an education at a later date, they will be heavily taxed on any capital gains earned in the 529 plan.
However, 529 plans generally have the best tax advantages to help parents save for college education. A custodial savings account will be taxed on any contribution over $15,000 as a gift tax. To avoid this, many choose to start a 529 plan.
Once you determine which type of plan is best for your family, the question is, where do you go to start saving? Stash Invest allows you to start investing* in your future with as little as $5. Setting up Auto-Stash is quick and easy and will enable you to add cash to your investment plans every month.
You can also open up a custodial savings account, diversify your child's portfolio, and see the growth of your investments each month.
Stash utilizes fractional shares, so you get the best investments possible to reach your goals. Stash also offers a stock back card, allowing you to earn stock for everyday purchases, automatically adding to your investment portfolio.
Get a custodial account or open a 529 College plan with just $5.00 at Stash Invest. Get peace of mind for your kids' education today!
*Paid non-client endorsement. See Apple App Store and Google Play reviews. View important disclosures. Investment advisory services offered by Stash Investments LLC, an SEC-registered investment adviser. This material has been distributed for informational and educational purposes only and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. This material is not intended as investment advice and is not meant to suggest that any securities are suitable investments for any particular investor. Investment advice is only provided to Stash customers. The offer is subject to Promotion Terms & Conditions.