A lot of states, state agencies, and educational institutions offer 
savings programs that allow parents to start setting aside money for their children’s education years before they’ll need it. They are known as 529 plans, and they include pre-paid tuition plans and college savings plans. These savings programs receive special tax advantages, encouraging families to begin saving early.
Interestingly, the state of Virginia recently enacted legislation that establishes a creative savings plan for prospective homebuyers. The First-Time Homebuyer Savings Plan is designed to help families save money toward a down payment and closing costs on their first home. The plan is somewhat similar to the 529 plans because the funds are exempt from state taxes, and parents and grandparents can designate investments for their children’s or grandchildren’s future purchase of a home.
The Virginia state legislature created this program because of concerns over the decline in homeownership for first-time homebuyers, particularly among young people. The persistence of tight lending standards requires borrowers to come up with substantial down payments, often 20% to 25% of the sales price. As a result, young individuals, lower-income populations, and those saddled with debt cannot obtain financing and are unable to purchase property. Hopefully, this creative solution will enable and encourage more families to set aside funds and ultimately give them the opportunity to invest in real estate. Apparently, Montana already has a similar program. Perhaps our state should consider something along these lines to further boost homeownership and the Florida real estate market?!