If you live in a state that offers an education savings account (ESA) and are considering an alternative to public school for your kiddo, you’re probably wondering what you can actually spend ESA funds on. Tuition seems like a natural fit, but what about tutoring, computers, online courses, or a homeschool curriculum?
And, what if you don’t use all your funds in a given school year? Can they be used for future K12 costs, or even college?
The answers depend on the state program that funds the ESA. Some programs are universal and give parents plenty of flexibility, letting them choose the types of services and products to use the funds for. Other programs focus on services for students with special educational needs.
To help you get a better idea of how all this works, this guide covers the qualified education expenses that ESA funds cover. You’ll learn how a state-sponsored ESA works, what the qualified expenses are, and how to use your funds properly so you can ensure your child receives an education that fits them.
An education savings account, also known as an education scholarship account, is a spending account set up for eligible K-12 students. These accounts are funded and supervised by the state. They allow families to use money that would normally be allocated for their child’s public school education to cover the costs of private school or other educational expenses. The state puts that money into an account for parents to use on qualified education expenses.
This type of educational savings account is different from a custodial savings account like the Coverdell ESA. The Coverdell education savings account is a tax-advantaged custodial account that parents or other family members open for their children. In this article, we’re talking about state-run ESA accounts.
Education savings accounts exist to give families control over their kids’ education. Instead of being limited to your local public school, you can choose where and how your child learns and use ESA funds to cover some or all of the costs.
State-funded K-12 ESA programs deposit government education funds directly into an account for you to use. These programs vary by state; some are available to all families, while others target specific groups, such as students with disabilities or those from lower-income households.
For example, Wyoming and Arizona offer universal K-12 ESA programs, which means all kids who are eligible to enroll in public school qualify. Other states have targeted programs. Indiana’s Education Scholarship Account Program, for example, is for K-12 kids who have special education needs or meet a certain income threshold.
Things are changing fast regarding ESAs in the US. More states are expected to introduce or expand ESA programs in 2026, giving more families access to flexible education funding.
Education savings accounts work for K-12 in-person private schools, online schools, and homeschool programs. And if you have any leftover ESA funds from K-12, you can use that for college, too.
Let’s break down what types of education expenses you can use your ESA funds for.
State-funded ESAs cover tuition for in-person and online K-12 schools. That means, if you want to give your child a more personalized learning experience, you can use funds from your ESA program to make an alternative to public school more affordable. You can pay for tuition, application fees, and registration fees.
Textbooks, workbooks, and standard school supplies like notebooks, pens, calculators, and art supplies all count as qualified expenses for ESA funds.
For homeschooling families, this includes curriculum materials and lesson plans, or anything required for coursework. Digital materials like ebooks and educational apps qualify, too, as long as they're used for learning.
Computers, tablets, educational software subscriptions, and internet access needed for online learning are covered. Many state ESA programs have specific guidelines for technology purchases, so check your program's rules.
One-on-one or small-group tutoring qualifies, whether it's for academic support, test prep, or enrichment. Extra math help and reading interventions are covered under most programs. Other services, such as educational testing costs, also qualify.
Students with individualized education programs (IEPs) or 504 plans can use ESA funds for specialized services, assistive technology, therapeutic programs, and adaptive equipment. Services include art therapy and speech therapy. State-funded programs often prioritize students with special needs for ESA eligibility.
Most families use their educational scholarship funds to pay for tuition, curriculum materials, and tutoring services.
In Arizona, families receive between $7,000 to $8,000 a year, with over 60% being used for private school tuition costs, according to the Arizona Department of Education. Nearly 12% is spent on instructional materials, and about 8% is used for teaching and tutoring services. Other common expenses include computers and educational therapies.
According to survey results shared by the Thomas B. Fordham Institute, 57% of families enrolled in Florida’s ESA programs used their funds to pay for private school tuition. Over 20% paid for instructional materials, 11% purchased specialized services, and 5% spent funds on tutoring.
You can use your funds for any qualified educational expenses in your state, so it’s up to you to determine what’s best for your kiddo.
After applying for the ESA program in your state and receiving approval, the state deposits funds into your account quarterly or annually. You'll use a special debit card or payment platform to pay approved vendors directly. Most states pre-approve certain providers, making the payment process straightforward.
Each state sets its own rules for what exactly qualifies, how much you can spend per category, and which vendors are approved. Some states require you to submit receipts for reimbursement, while others let you pay vendors directly through their platform.
Here are tips for staying compliant:
Do you want to use your ESA at bina? As of right now, state-funded ESAs will cover bina in Arizona and Wyoming, with more states coming soon.
If you’re a Wyoming or Arizona resident, your family is likely eligible. Most families qualify simply by living in the state and not attending public school. There are no income requirements. Both states allow you to use $7,000 in ESA funds to offset your child's tuition at bina.
We’re a global online school that teaches kiddos from ages four to 12. At bina, kiddos learn in small classes and benefit from precision education, a kid-focused approach that balances personalization with standardization.
Learn more about how ESA programs work at bina.
Yes, most state-funded programs can be used for homeschool expenses like curriculum materials, textbooks, educational software, online courses, and tutoring. Some state programs require you to register as a homeschool family first. The flexibility makes ESAs popular with homeschool families who want resources beyond free curriculum.
Most accredited online private schools, including bina, accept ESA funds. State-funded ESA programs usually keep a list of pre-approved online schools you can reference. So check your state's ESA website for specifics.
For state-funded K-12 ESA programs, rollover rules vary significantly. Most states allow unused funds to roll over from year to year, and some permit use for college expenses. Others require you to return unused funds to the state when your child leaves the program. Check your specific state program guidelines.
No, but the number is growing. As of May 2025, 18 states have established K-12 ESA programs, with more considering legislation.
