One of the most meaningful gifts that you can give to a loved one is the gift of an education.
Who are you planning for?
Is this person a child/grandchild, niece/nephew, or perhaps a child that you deeply care for but share no relation with?
How long until they will be needing to use the funds you are setting aside for them?
What type of education do you anticipate this person to pursue?
Will it be the traditional 4-year college route or will they be more interested in a technical school?
Do you anticipate they will want to start at community college instead of going straight to a 4-year?
Could this be for a child that you'd like to see attend a private school from a young age?
What kind of support would you like to provide?
Would you like to give this person a full ride to an Ivy-league school or simply help them cover the cost of tuition and books at a local junior college?
What type of accounts should you use to save?
Depending upon the likelihood of education and the financial dynamics, there are several options available to save towards the education goal. It is important to determine what would be the most suitable method to use for your situation.
How much do you need to save?
Once you have answered the previous questions, you must determine how much you must save to reach your goal. This will vary based upon your timeline, estimated costs, and expected rate of return.