How Many Bank Accounts Should I Have?

5. College saving (529b) / Custodial accounts

If you have kids, a 529 plan or custodial account is perfect to help you save for their education. 529 plans are valid for education expenses starting from elementary school all the way through college and beyond. When a child reaches college and beyond, these funds can go towards books, tuition, room and board, and school supplies.

The major benefits of the 529 account are that taxes are deferred as the money invested grows and any withdrawals made that go towards school expenses are tax-free.