So as you can see in today's blog title, we will be discussing a popular savings account known as the ESA. If you have children or are planning on having children, then listen closely because this will pertain to you. Many people simply keep a bank account or some piggy bank to store savings that their children can use to pay for college. Some parents do not even pay for their child's college and simply have them take out student loans. There is nothing wrong with any of these methods, since the student loans things can actually be used to teach your child how to be responsible with paying off debt. However, there is a great alternative that not a lot of people are using and that is called the Coverdell Educational Saving Account, or the ESA for short. Basically what this is is an account that allows each individual to deposit $2000 or less every year, and not have to pay taxes on any earnings that are related to appreciation or dividends, or so forth. This is of course, contingent on the fact that the child uses the fund on educational expenses that are qualified, and most college are. Once the child is 18, this fund is no longer eligible to grow. The child must use up all these funds before they hit the age of 30. But here are some of the cool perks of having a ESA. Let's say your child gets a scholarship. Woohoo. In additional to celebrating, you should also celebrate the fact that you are ALLOWED to withdraw an amount equal to that scholarship without being penalized. How cool is that? In addition, if your child has a disabilities or have some sort of special need then the rule about using the account up before age 30 is waived. Personally, I think every parent should open up an ESA account for their children, and contribute the maximum possible. Even if your child has a small chance of not going into college, this will at least guilt them into going to college and becoming a doctor. Hope this helps some of you prepare your children for college!