You may have heard of 529 accounts, but Coverdell accounts offer a little known way to save for your child's private school.

With a Coverdell, you pop money in that grows tax-free and is spent tax-free on educational expenses for kids in kindergarten through 12th grade. You can contribute up to $2,000 a year once your child is born.

Coverdell money can also be used to pay for college tax-free instead of private school.

Charles Schwab is particularly big in the field of Coverdells. You need $1,000 to open an account and it comes with very low-cost investment fees.