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Education is a crucial investment in a child's future, and as a parent, planning for their educational needs is essential. In this article, I explore the various educational savings accounts available to parents for private K-12 education. Understanding these options will help parents make informed decisions and effectively engage with their legal and financial professionals. Disclaimer: I am not a financial advisor or tax professional. The information given here is for educational purposes only. Always consult with your financial advisor, account or tax professional before making important financial decisions.

The History of Educational Savings Accounts

Educational savings accounts in the United States have evolved to address the need for specialized savings vehicles for education expenses.

Here is a brief history of educational savings accounts and the key legislative milestones:

1. 1996: : The SBJPA, enacted in 1996, introduced a new type of account called the Education IRA (now known as the Coverdell Education Savings Account or ESA). This legislation allowed families to save for education expenses with certain tax advantages.
2. : The TRA, passed in 1997, expanded the scope of Education IRAs (Coverdell ESAs) by increasing the annual contribution limit from $500 to $2,000 per beneficiary and extending the use of funds to include elementary and secondary education expenses in addition to higher education.
3. : In 1998, Section 529 of the Internal Revenue Code was enacted, creating a new

The utilization of vouchers in education has been a subject of ongoing debate in various states, and Arizona is no exception. Vouchers, also known as school choice programs, provide public funds that parents can use to cover tuition expenses at private schools. In this article, we will delve into Arizona's current state of vouchers, exploring relevant state laws and evaluating the pros and cons of this contentious issue. However, before we delve into Arizona's voucher program, here is a look at the beginnings of voucher programs.

How voucher programs got their start.

Voucher programs have their roots in the mid-20th century. Economists and politicians initially promoted vouchers for educational choices and alternatives to traditional public schools. The concept of vouchers gained traction as a response to concerns about the quality of education, particularly in disadvantaged communities.

Here is a brief overview of the historical context and reasons behind the emergence of voucher programs:

Milton Friedman and the School Choice Movement

The intellectual foundation of voucher programs can be traced back to economist Milton Friedman, who popularized the idea in his seminal 1955 essay ".

Friedman argued for a system where government funding would follow students, enabling parents to choose the educational institutions that best meet their children's needs, including public and private schools.

Civil Rights Movement and Desegregation

During the Civil Rights Movement in the 1950s and 1960s, there was a push for desegregation and equal access to

I wrote my first article on vouchers in 2008. While the media portrays it as a controversial issue, I have always tried to take a balanced approach when I write about vouchers. School Choice: Vouchers, Scholarships, and More; Vouchers aka Tax Credits and Scholarships; What Strings Do School Vouchers Have Attached?; Charter Schools and Vouchers illustrate my thoughts on the subject.

This time, because so much more information about voucher programs is available, I asked an authoritative source to answer my questions on your behalf.

Rob K: What is the purpose of a private school voucher program?

ChatGPT: A private school voucher program aims to provide families with publicly-funded scholarships or vouchers that can be used to pay for tuition at private schools rather than at public schools. The goal of such programs is typically to increase school choice and provide families with access to educational options that they might not otherwise be able to afford.

Proponents of voucher programs argue that they promote competition among schools and can help improve education quality by giving families more options and forcing schools to compete for students. They also argue that voucher programs can help to reduce educational inequality by providing low-income families access to high-quality private schools that they might not otherwise be able to afford.

Critics of voucher programs argue that they divert public funds away from public schools, which can lead to reduced resources and lower-quality education for students

Parents turn to private K-12 education for all kinds of reasons, from overall quality of curricula and individualized teaching strategies to location and religious affiliation. Now they may be adding another motivation to the list: overcrowded classrooms and public school bus rides just seem more dangerous in the age of coronavirus.

If you’re home-schooling your kids right now, the day they return to classes may seem like a distant dream. (How’s your blood pressure?) But September will come—with or without online classes. Chances are you’re making decisions right now that will affect at least a year of your child’s future. Chief among them may be how you will continue to finance your child’s private school education.

In 2020, the average cost of K-12 private school tuition reached $11,012. Depending on where you live and whether you have elementary-, middle-, or high school-age kids, your mileage may vary. But across the country, has been increasing steadily along with the rising cost of education. K-12 loans aren’t subsidized by the federal government like higher-education loans. Still, many parents clearly believe that private school education is worth the investment. The question moms and dads should be asking themselves is, “How can I be sure I’m investing wisely?”

School Stability

The global coronavirus pandemic has injected uncertainty into every sector of the economy. That’s true at the micro-level, as many parents join the fast-expanding ranks of . It’s also true for private schools,

According to , "School choice is a term for K–12 public education options in the United States, describing a wide array of programs offering students and their families alternatives to publicly provided schools, to which the location of their family residence generally assigns students." Vouchers have been in the headlines for almost thirty years. So, this is not a new issue, although the media attention sometimes implies that vouchers are a new idea. A timeline is helpful when dealing with a controversial issue such as school vouchers. But before we do that, what are vouchers?

describes vouchers as:

"School vouchers give parents the freedom to choose a private school for their children, using all or part of the public funding set aside for their children’s education. Under such a program, funds typically spent by a school district would be allocated to a participating family in the form of a voucher to pay partial or full tuition for their child’s private school, including both religious and non-religious options."

You will hear vouchers called various names, such as parental choice, education grants, scholarships, and tuition grants, to list but a few of the names you will encounter for vouchers. currently offer 26 voucher programs. offers a useful table comparing the voucher programs offered in states that have them.

Why are vouchers controversial?

Now that you have access to