What to do with my daughters savings account?

[agonzales1981]

Hello all, My daughter is 18 months old and when she turned 1 her aunt got her a $100 savings account w/ frost. My wife and I deposit $200 per month into the account but I want to roll it over to better take advantage of the money. I hope to have at least 40-50k by the time she is ready for college, and as my wife and I move up in our jobs so will the contributions.

 

What are the best options for her account? We live in TX btw.

[Daddy]

Congrats on getting started early!!! You are well on your way.

 

Go to T. Rowe Price dot com and look into an ESA (Education Savings Account). You can out in about $166.67 a month into that and it grows tax-free if you use it for educational purposes. It's basically like a Roth IRA. You can also look into a 529 account. Either way, by considtently contributing $200 a month, you should have WELL more than $40-50k.

 

Good luck, and again, congratulations!!!

[Daddy]

LOL. I didn't even notice that you mentioned a 529 in your title.

[agonzales1981]

Thanks for the congrats, I'll look into the ESA accounts!