Planning for your child's education is a significant financial undertaking, and starting early is crucial. With the rising costs of tuition, books, and other related expenses, it's essential to explore the various savings schemes available to secure your child's future. Here are some of the best options to consider:

529 College Savings Plans: These state-sponsored, tax-advantaged plans are designed to help families save for future education expenses. Contributions to a 529 account may be tax-deductible in some states, and the money grows tax-deferred. Withdrawals for qualified education expenses, including tuition, room and board, books, and fees, are federal income tax-free. There are typically no income or annual contribution limits for 529 plans. As of 2024, 529 plans may roll over up to $35,000 to a Roth IRA if the 529 has been held for a designated beneficiary for at least 15 years. In 2025, an individual can contribute up to $95,000 in a single year to a particular 529 plan.

Coverdell Education Savings Accounts (ESAs): Coverdell ESAs are similar to 529 plans, offering tax-free growth and distributions for qualified education expenses. However, Coverdell ESAs have lower contribution limits and income restrictions. The maximum annual contribution is $2,000 per child. Funds from a Coverdell account can be used for a broad range of K-12 expenses, including supplies, uniforms, and tutoring services.

Custodial Accounts (UTMA/UGMA): Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) accounts allow an adult to invest money on a child's behalf. These accounts can be opened at a bank or brokerage firm and used to invest in stocks, bonds, mutual funds, and more. UTMA/UGMA accounts offer flexibility, as the funds can be used for any purpose that benefits the child. There are no contribution limits, allowing you to save large sums for your child's future. In 2025, you can give $19,000 per person per beneficiary without filing a gift tax return.

Savings Accounts: Opening a savings account at a traditional or online bank is a simple way to save for your child's education. These accounts are easy to contribute to and offer FDIC insurance up to $250,000. Look for savings accounts with no minimum balance requirements, no monthly fees, and better-than-average interest rates.

Children Education Plan (CEP): The Children Education Plan (CEP) is a savings plan that is created to provide school fees at an earmarked educational milestone in the event of death.

Education Legacy Assurance Plan (ELAP): As for the Education Legacy Assurance Plan (ELAP), it is a savings plan targeted towards financing the future education of a named child in the event of death or permanent disability of parent or guardian.

FCMB Education Investment Plan: With this investment plan, you can save towards your child's education by investing periodically (monthly/quarterly/yearly) into an investment fund, and the bank will pay out when the plan ends.

ARM Life's Education Plan: With this education savings plan you can invest as low as N5000 monthly into your child's account. You will get a tax free lump sum of all your investments and interest at the end of the year which can be used to fund your child's education.

CHESS (Children Education Saving Scheme): With a CHESS savings account, you are allowed to set up and manage your child's account just the way you want. The account is available to children ages 1 month to 17 years, with additional benefits for parents who already have an account with the bank.

EduPlan by AXA Mansard: The plan provides a medical expense cover for a child, against injuries sustained whilst engaged in school activities. With this plan, even in the event of the death of the parent, the child will still enjoy the benefits of quality education.

Choosing the right savings scheme depends on your individual circumstances, financial goals, and risk tolerance. Consider factors such as tax benefits, contribution limits, investment options, and flexibility when making your decision. Consulting with a financial advisor can help you determine the best strategy for securing your child's educational future.