But with the new tuition savings plan, you can plant your money in stocks while your children are young and gradually move it to less risky bonds as they approach the college years. The plans also provide lots of flexibility for how and where the money is used. For instance, if the designated beneficiary opts to skip college, the fund can be rolled over to another family member. There is no restriction on what type of schools the fund can be used for either. So if your child is eyeing an art school or trade school instead of a four-year university, you can still use the money.
Graduate programs qualify as well.
If your child doesn't enter a post-secondary program right away, the fund can remain untapped until he or she is ready. Besides tuition, the money can be applied to room, board, books and other supplies. And the beneficiary doesn't have to attend school in Pennsylvania. One issue DeFilippi really likes about the investment plans is that grandparents can launch them. Sometimes control is a big issue especially for grandparents who want to provide money but are worried about children getting control of large sums when they turn 21.