Random "what if" question for those saving for LO's education?

SheriBT

Just a completely random question.

What if LO doesn't go to college?  What do you plan on doing with that money saved up?  Would you still give it to him or her as a gift?  Or is it a stipulation that he or she has to go to college to be given the money? 

jennylove1084

We set up a 529 which would transfer to another child or relative in college, or one of us could go back.  Worst case, we could withdraw the cash and pay taxes on it.

Breezer80

For us, going to college isn't a "maybe". She goes, period. Sorry love (her, not you LOL)

Lilly923

We've actually talked about this. IF he decides to not go to college, we will either use it for retirement or allow him to have some (not all) of the money when he's 30 for a down payment on a house.

mrsmel

jennylove1084:

We set up a 529 which would transfer to another child or relative in college, or one of us could go back.  Worst case, we could withdraw the cash and pay taxes on it.

this.

jkipp82

DS's is in an account that he will not necessarily know about.  It is meant for college - but college isn't for everyone.  My brother never went to college and neither did DH.  IF DS doesn't go to college - it will be used for a downpayment on a house, etc.  It won't be a "here's money...do whatever you want with it"...but if college isn't in his cards (as much as I hope it is)...then we will offer it to him when it is needed for another big ticket item such as a house.

moonfaerie

I think by the time our LOs are college-age, almost everyone will go. By then it will probably be the only way to get a job, to have a degree or some sort of specialized schooling. A bachehlor's degree will be the new high school diploma, so to speak. So I'm going to raise L with a "when she goes to college" not "if she goes" mentality and I guess if she doesn't, then we will use the money for retirement or something.

simple288

it's LO's money. if she choose no college, she gets to keep it but after she's 30 or 25 yrs old (haven't decided on the age).

ntnylizard

Assuming we have both TAPs fully-funded (and assuming we have a 2nd kid), here's what I posted below...

If DS gets scholarships or grants, fantastic; we'll cash out some of our investment.  If not, at least college will still be an option, even if it is $80,000 a year, as some projections estimate it could be.  And if college isn't for him, so be it; we'll cash out our investment.  Other projections estimate blue collar jobs are going to become much higher paying in coming years -- after all, demand for plumbers, electricians, painters, etc. will always be there, even when there are far fewer of them and they can charge more.

CalinsBride

We get our contribution back and the government gets their contribution back. Depending on where DS is in life, that would determine what we do with the money. If he's a responsible adult who just happened to pursue a career path that didn't require that he attend post secondary education, then maybe we would give it to him to buy a house. Maybe we'd use it to pay for his wedding.

If he is not responsile and hasn't proven that he deserves it, we would probably just keep it until he straightens himself out, and barring that, it would go to grandchildren or we'd add it to our retirement fund. I guess we'll see.

ETA: We would never use that much money for his wedding, but we'd use some of it for that, and the rest for something else.

MattysGirl81

jennylove1084:

We set up a 529 which would transfer to another child or relative in college, or one of us could go back.  Worst case, we could withdraw the cash and pay taxes on it.

This.

And DS will go to college.  I have my masters and DH is a lawyer, so education is a must.  Frankly, I can't imagine anyone not insisting that their child go to college. 

rianals

Generally, by the time a child is college age, a parent can insist or not, but it is still the kid's choice.  Some kids choose not to go.

CalinsBride

MattysGirl81:

jennylove1084:

We set up a 529 which would transfer to another child or relative in college, or one of us could go back.  Worst case, we could withdraw the cash and pay taxes on it.

This.

And DS will go to college.  I have my masters and DH is a lawyer, so education is a must.  Frankly, I can't imagine anyone not insisting that their child go to college. 

I can't imagine anyone thinking that they have control over what path another adult decides to take with their life.