What is the advantages and disadvantages of a money market fund for my son education?

The time horizon that you have until your son needs the money for school will determine how much risk you should take. If you will need the funds in less than 5 years a money market, cd or US Savings Bonds are your best bets because there is no risk to your principal. If you have more than 5 years these options are not nearly as attractive. Inflation is approximately 4% and you also would have to factor in taxes for the money market and the cd. If you factor in inflation and taxes into the picture it is practically impossible to grow your pot of money using money markets and CD's over time. Your best bet when you have more than 5 years are investments such as index mutual funds inside of a 529 education plan. Good luck

Not as good interest. Don't know how old your son is< but I've opened a Higher Learning Fund at my bank for each of my grandsons. It's the best I've found. It pays 4.75% interest, and no body can take the money out except the grandchildren. They can't get into the fund until they turn 18 and graduated from high school. If they choose not to go to college, they can't get any of the money until they are 21 unless I allow them. No body can get their money but them, not even me..

MMA's are FDIC insured and rates are quite good. I can't think of any disadvantages now that rates are moving up. You can get them around 4.75 - 5% now online. The rate adjusts from time to time. It's been rising lately.

There are risks other than market or interest rate risk to consider, how about opportunity risk if you leave the $ in a MMA and stocks or bonds grow faster you lost the opportunity to grow the $.

When will you need the $ in 1 year , less than 5, less than 10, or more than 10? This is another issue, if you need the $ sooner than 1 or 2 years MMA is probably best but if you won't need it for 3 or more years you should consider an allocation of both stocks and bonds that over time allow you to both grow the funds and earn interest.

You may want to discuss you options with a Financial Planner before you make a decision.