As a parent, you must know how overwhelming it can be to make decisions that will affect the future of your kid. Particularly when choosing the most suitable college savings plan for your darling son or daughter, you will discover how tough the role of a mum or dad is.

Nevertheless, the same way that there is always Suncorp life insurance that caters to your needs, you can also select the best option for your child by considering the unique features and benefits of each account.

One of the things that you need to consider is your tolerance for risks. If safety is a main concern for you, then the Section 529 Prepaid Tuition Plan is what you should have. The deal is you buy tuition from the state with the corresponding guarantee that at some time in the future, you will get the equivalent amount for your money. And since it is quite impossible for the government to go bankrupt, there is no way you could possibly lose your investment. What is even more interesting is the fact that the sums you contribute grow tax-deferred and you can possibly make tax-free withdrawals. In addition, the assets can remain under the control of the parent or donor, who can spend the same for personal use.

On the other hand, if you prefer higher rates of return, your best bet is the Coverdell educational savings account (ESA). Aside from giving more freedom to select your investments, it also follows looser standards as regards how you spend the money. This is even more helpful if you have many children because you can move unused funds to a different Coverdell account or utilise the money to set up a new one for other members of the family, including grandchildren.

Although other vehicles such as trusts, Roth IRAs, and UGMAs may offer unique opportunities, they do not serve families as great as Coverdell ESAs and Section 529 plans. Some accounts require that the parent or guardian should hand over the funds to the child before he or she reaches twenty-two (22) years old. Still, some sound impressive but are actually extremely costly to set up and manage.

Indeed, if education is really an investment, you should understand how you could get the most returns out of it.