What type of savings account does Dave Ramsey recommend for children's college funds?

Dave Ramsey recommends 529 college savings plans or Education Savings Accounts (ESAs) for children's college funds because these accounts offer tax advantages specifically designed for education savings.

A 529 plan allows families to save money for their child's college expenses with tax-free growth and tax-free withdrawals for qualified education expenses, such as tuition, fees, and room and board. Similarly, ESAs provide a way to save for education with tax-free growth, but they come with different contribution limits and rules. These accounts help parents accumulate funds efficiently over time while minimizing tax liabilities, making them ideal for planning future education costs.

In contrast, retirement accounts, standard savings accounts, and health savings accounts do not offer the same kind of benefits tailored for educational savings. Retirement accounts primarily focus on saving for retirement, and while standard savings accounts provide liquidity, they typically do not offer tax advantages. Health savings accounts are designated for medical expenses and are not appropriate for educational funding. Thus, 529 plans and ESAs are specifically designed to support and incentivize saving for college, aligning perfectly with the goal of funding education.