The cost of a college education keeps climbing, and for many families, the price tag of higher education can feel overwhelming — especially when you're balancing daily expenses, retirement savings, and everything else life requires.
Here's the good news: you don't have to have it all figured out on day one. What matters most is starting. The earlier you begin setting money aside, the more time your savings have to grow. At B.A. Schrock Financial Group, we believe a clear, personalized plan is the foundation of any smart financial strategy — and that includes your child's future.
529 Plans: A Cornerstone of College Savings
The 529 plan is one of the most widely used college savings tools for good reason. These state-sponsored accounts offer several advantages:
Tax-advantaged growth. Contributions grow tax-deferred, and withdrawals for qualified expenses — tuition, books, room and board, technology — are federal tax-free.
State-level incentives. Ohio residents may be eligible for state tax deductions on contributions to Ohio's 529 College Advantage program.
Flexibility and control. The account owner keeps control of the funds and can change the beneficiary if your child's plans shift.
Generous contribution limits. Most 529 plans allow for substantial savings over time, giving you room to grow as your financial situation evolves.
Coverdell ESAs: Built for Flexibility
A Coverdell Education Savings Account (ESA) offers similar tax advantages to a 529 but with added versatility — funds can be used for K-12 expenses as well as college. If private school or other pre-college education costs are part of your picture, this is worth exploring. Annual contributions are capped at $2,000 per beneficiary.
Other Strategies to Consider
529s and Coverdell ESAs are popular starting points, but they're not your only options:
Roth IRA contributions. While primarily a retirement account, a Roth IRA allows contributions (not earnings) to be withdrawn penalty-free for education expenses — a useful dual-purpose tool.
Custodial accounts (UTMA/UGMA). These let you gift assets to a minor for future education use, though with fewer tax advantages than dedicated education savings accounts.
Taxable investment accounts. For families who've already maximized other vehicles, taxable accounts offer flexibility with no restrictions on how funds are used.
Build a Plan That Works for Your Whole Financial Picture
There's no one-size-fits-all answer here. The right approach depends on your timeline, risk tolerance, savings goals, and how college funding fits alongside retirement and other priorities. That's where we come in. We help families build college savings strategies that work in harmony with their broader financial plan. Give us a call 330.473.1060 or send us an email at Info@baschrock-fg.com to learn more and get started.
B.A. Schrock Financial Group
131 College St.
Wadsworth, OH 44281
Investment Advisor Representatives offer advisory services through BA Schrock Wealth Management, Inc. (BASWM), a registered investment advisor. Insurance is offered through BA Schrock Financial Group, Inc. (BASFG), an insurance company. BASWM and BASFG are affiliated and share common ownership.
Information presented is for educational purposes only and is not intended to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investing involves risk, including the potential loss of principle. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
Information expressed does not consider your specific situation or objectives and is not intended as recommendations appropriate for any individual. Readers are encouraged to seek advice from a qualified tax, legal, or investment advisor to determine whether any information presented may be suitable for their specific situation