EDUCATION SAVINGS ACCOUNTS: STATES WITH HOMESCHOOL GRANTS FOR FAMILIES
TL:DR
Education savings accounts are a great way to receive grants for homeschooling.
Did you know that some states offer homeschool grants or stipends for families to pay for eligible educational expenses? And in some states, this funding might even extend to some private schools and microschools. They are commonly known as Education Savings Accounts however you may also see them referred to as Empowerment Scholarship Accounts, Educational Savings Accounts, School Choice programs, or Children's Scholarship Funds.
When it comes to saving for or funding your child’s education, an ESA is not the only option. You've also likely heard of terms like School Vouchers, and 529 Plans. While they all support educational expenses, they serve different purposes. Let’s break down what each one means and how they can benefit your family.
What Are Education Savings Accounts (ESAs) ?
An Education Savings Account (ESA) is a government-funded account that allows families to use public education dollars for a variety of approved educational expenses. These expenses can include:
Private school tuition
Homeschooling supplies
Tutoring services
Online learning program
Special education services
Instead of sending state funding directly to a public school, the money is placed in the student’s ESA, giving parents flexibility to customize their child’s education. ESAs are often used to meet specific learning needs or access educational resources outside of traditional schools.
Example: Imagine your child is homeschooled, and you want to pay for online math classes, tutoring, and specialized learning materials. An ESA could cover those costs.
Education Savings Accounts vs. School Vouchers vs. 529 Plans: What's the Difference?
School Vouchers
A school voucher is a state-funded program that helps families pay for private school tuition. Vouchers give parents the option to redirect some or all of their child’s public education funding toward a participating private school.
Vouchers are designed to expand school choice, especially for families in low-performing school districts or those seeking alternative education options. However, voucher availability and eligibility vary widely by state.
Example: Suppose your child attends a public school that isn’t meeting their academic needs. A school voucher could help cover tuition at a private school that better fits their learning style.
529 College Savings Plans
A 529 Plan is a tax-advantaged investment account designed specifically for education savings. While traditionally used for college expenses, recent updates allow 529 funds to be used for K-12 tuition as well (up to $10,000 per year).
529 Plans grow tax-free, and withdrawals are also tax-free when used for qualified educational expenses like tuition, books, and student housing. They’re a powerful tool for long-term education savings.
Example: If you open a 529 Plan when your child is born and contribute regularly, those savings can grow significantly by the time they’re ready for college.
Key Differences at a Glance
ESAs: Flexible state-funded accounts for various educational expenses including homeschooling.
Vouchers: State-funded financial aid specifically for private school tuition.
529 Plans: Tax-advantaged investment accounts designed for both K-12 and college expenses.
Which Option Is Right for You?
If you're seeking flexibility in your child’s education, an ESA may be ideal. If private school tuition is your priority, a voucher could help. For long-term savings, a 529 Plan is a smart investment strategy.
Homeschool Grants for Families
So, how do you get paid to homeschool your child? Education Savings Accounts (ESAs) are a resource that is available to save families money and can be used on tutoring, private school tuition, curricula, educational therapy services and and other academic resources by using allotted government funds. ESAs can also offer homeschooling families the opportunity to access public funds allocated per student as well.
Again, not to be confused with 529 college savings plans, grants for homeschooling (or ESAs) initially launched in Arizona in 2011. ESAs were initially targeted towards students with disabilities, those from low-income backgrounds, and students attending underperforming schools. However, with the rise of homeschooling during the pandemic, and now even microschools, their appeal has surged, prompting more states to adopt programs, enabling all K-12 students to benefit from them.
Which States Offer Education Savings Accounts?
Each state establishes unique guidelines regarding program eligibility, scholarship amounts, and the permissible use of education savings account funds. For families residing in participating states, it's important to periodically visit their state’s ESA website for detailed information on application procedures and eligibility criteria as the rules can change from year to year.
Check below to see if your state made the list then click its associated link to view their eligibility requirements!
List of Grants for Homeschooling By State
State | Name of ESA |
Alaska | |
Arizona | |
Florida | |
Georgia | |
Indiana | |
Iowa | |
Kansas | |
Minnesota | |
Mississippi | |
Missouri | |
Montana | |
New Hampshire | |
New York | |
North Carolina | |
Ohio | |
Oklahoma | |
South Carolina | |
Tennessee | |
Utah | |
Vermont | |
Wisconsin | |
West Virginia |
*Please note that the availability and specifics of these programs may have changed, and new programs may have been introduced since our last update. Always check and verify with the relevant state authorities or homeschooling organizations for the most current information on grants or stipends for homeschooling families in your state.
For more info regarding grants for homeschooling, HSLDA is an additional great resource.
Money for Homeschooling : How To Use An ESA?
Here's how it works: each state sets the amount of money and the criteria for what can be considered an eligible expense under an education savings account.
Now, when it comes to using your ESA, you've got a couple of options. You can either propose your own learning resources for approval by your state, or you can simply pick from the list of pre-approved resources available by approved providers and vendors on your state's chosen platform or marketplace.
Honestly, the easiest route? It's diving into your state's selected online platform and picking from the list of pre-approved educational resources already waiting for you there. They've got everything from homeschooling supplements to different learning materials, tutoring, and even live or virtual academic courses. It's like having a directory of approved education resources right at your fingertips!
ESAs vs. Homeschool Tax Credit
While education savings accounts pay you up front or reimburse you for educational costs, homeschool tax credits are slightly different. Think of these as a pat on the back from Uncle Sam come tax season. Certain states offer tax credits or deductions for homeschooling expenses like books, supplies, or even tuition. It's a way to recoup some costs without direct government funding like ESAs, thus maintaining greater autonomy over your homeschooling decisions. However, availability and amounts vary by state, so check your local regulations.
In a nutshell, ESAs provide upfront funds with potential strings attached, while tax credits offer post-purchase savings with fewer entanglements. Choose the option that best aligns with your family's educational philosophy and financial needs.
Which states offer a homeschool tax credit?
Five states in the US offer homeschool families to use a state tax credit on their income taxes.
Illinois: You can snag a 25% credit on qualified education expenses over $250, up to a max of $750.
Indiana: There's a tax deduction of up to $1,000 per child for homeschooling expenses.
Louisiana: The deduction is for 50 percent of the costs paid per dependent, limited to $6,000 if your dependent is home-schooled or attends a public school.
Minnesota: Provides tax credits and deductions for educational expenses, including homeschooling.
Iowa: Offers 25% of up to $1,000 in eligible expenses for each K-12 dependent.
These credits can help with costs like tuition, book or curriculum rentals, grade books, and workbooks. Keep in mind, tax benefits vary by state, and not all states offer them. Always check your local regulations for the latest info.
While these are the current states offering such perks, stay tuned—more states might join the party in the future! How To Integrate KidVestors Into Your Homeschool Curriculum
With 35 states now requiring financial education for students to graduate, we have even better news for parents! We help you meet these new mandates for your kids and teens by seamlessly incorporating KidVestors into your microschool, private school, or homeschool curriculum.
Thankfully, states like Arizona, Kansas, New York, Ohio, Missouri, Utah, Georgia, Arkansas, Texas, Michigan, and Minnesota just to name a few have given KidVestors their stamp of approval. That means eligible families can use their education stipends to purchase our curriculum, ensuring your students have access to top-tier financial education—whether they’re in a classroom or learning from home.
First, visit your local program's marketplace or website to check if KidVestors is already included in the list of approved resources. If so, you can use your local ESA funds to enroll your students in KidVestors, by completing our form here .
If you don't see us on the list yet, in most states you can also request for KidVestors to be an approved vendor so you can allocate these funds to start teaching your students finance!
Not to mention that when you sign up and invite other homeschool parents, your students (and your friends' students) can earn KV Bucks to earn extra cash rewards!
By weaving finance into your curriculum, you are gifting your kids the keys to navigate life's financial maze. With KidVestors you can teach budgeting, investing, and the art of smart money decisions. It's not just about dollars and cents; it's about molding responsible citizens who can thrive in a complex world because, let's face it, math without money isn't just boring; it's incomplete!
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