A question for those who have a college savings for LO.

mrsolsenk12

please know that I am not intending to be rude or judegemental with this but just a valid question.

What will you do with the money you saved for LO's college if they chose not to go to college? Not everyone goes to college or needs to. In some professions, a hs diploma is enough. Will you give the 18 year old the money you had saved to use as they please? Will you and DH use it?

LisaMarisa

Any money saved for college is only to be used for college, if the kids choose not to go, they dont get it.  I dont want to give them incentive to not go.  Thousands of dollars seems like a lot of money to an 18 year old.

fallbride110406

I answered this in the other post too, but we're not making our kids go to college.  If they choose to do something else (trade/art/culinary school, travel, military, etc.) that's great and they will get what is in their savings accounts at 18 no matter what.

t.bird

we technically have a savings account for her for her college education- but it's also for other things she might need. like a car or etc.

if she decides not to go to college, but still finds a job & gets her own place & all that jazz, then we will probably help her out with said money or save it for her wedding. something like that.

BizEB

We are saving for college and/or grad school.  We'll make it known that the money is there and the expectation is that our kids will go.  If they choose not to go, they won't get the money. 

laura&dan05

Hannah's college savings is in a College Boundfund which is a section 529 plan. The money is tax-deferred and withdrawls going towards education (including tuition, room and board, books, etc) are tax free. If she decided not to go to a traditional college the money can be used towards other trade schools.  We can change the beneficiaries on the account at any time.  Anyone can contribute to the account so we have a set amount put in it from each of DHs paychecks but our families can also contribute at any time (and they have on her birthday).  We also only need 1 fund for all of our children.  So when this LO is born we won't open an additional fund we'll just add more money.  If our children decided not to go to college or a trade school (not sure what the heck they'd be doing) we could withdrawl the money but we'd be taxed.  I'm not sure what we'd do with the money...it would depend on what our kids were doing with their lives.

In additon she has a traditional savings account for other non school related things.  We don't contribute to that monthly put I do put any money she recieves as a gift into that account.

GypsyEsq

The money would still be theirs to do with what they needed but they wouldn't gain control of it until 21.  As a child my grandparents set up a similar trust for me and my first cousin.  Our fathers (their sons) were the executors of the trust and the intent was the money was to be used for our college.  My uncle used my cousin's money for a private high school, because it was clear at that point that my cousin wouldn't be going to college.  My dad gave the entirety of mine to me when I turned 21 because I attended college on an academic scholarship.  When I went to law school I choose to take out loans and use my own savings so I actually didn't use my trust until my 30th birthday, when I bought a house.  The intent was education, and while both my cousin and I are educated (she did get a trade certificate and is very succesful in what she does) neither of us used the money as a college fund.  And I think our grandparents would be happy to see how it was used.  All things considered.  DD's savings will be set up similarly.

GuitaristsGirl

laura&dan05:

Hannah's college savings is in a College Boundfund which is a section 529 plan. The money is tax-deferred and withdrawls going towards education (including tuition, room and board, books, etc) are tax free. If she decided not to go to a traditional college the money can be used towards other trade schools.  We can change the beneficiaries on the account at any time.  Anyone can contribute to the account so we have a set amount put in it from each of DHs paychecks but our families can also contribute at any time (and they have on her birthday).  We also only need 1 fund for all of our children.  So when this LO is born we won't open an additional fund we'll just add more money.  If our children decided not to go to college or a trade school (not sure what the heck they'd be doing) we could withdrawl the money but we'd be taxed.  I'm not sure what we'd do with the money...it would depend on what our kids were doing with their lives.

This.  We're putting approx.  50% of what we anticipate needing into a 529.  Honestly, I'd never *make* my kids go to college, but I can't imagine what they'd do without a degree.  Growing up we were never "told" to go, it was just understood that that's something you did.  My parents liked to say that school isn't 12 years (1st-12 grade), it's 16 years.  

If he/ they chose a different path, I'm sure we'd support it, and we'd decide what to do about the money based on the specific circumstances. 

JGirl2005

We aren't contributing yet because we aren't sure what plan to pick.  If you pick one of the 529 plans yeah it has to be used towards college or other schools as other mentions.  You can just give it to the kiddo if they choose not to continue their education.  We are pretty sure our kids will go to college and we don't want to make it a choice for them.  But we may just contribute to another account for saving for college.  In that case, we will probably not give it to them if they hcoose not to go.

RoxBride

It has to be used for post secondary eduation, period. College, mechanic's school, whatever, but that's it. Call me judgemental, but no, a HS diploma will not be enough, and we will regularily reinforce that for DD. If she's not cut out for college that's fine, but she'll need some sort of career training.

LCB34

College is really not optional for Kate unless there is a major reason why she cannot attend.

Flame away but, a HS diploma isn't enough in my opinion.  We are saving for her education and she will continue beyond high school.  And honestly, an undergrad degree is not even enough in most fields today. 

If she receives scholarship money, and does not use everything we have saved for her education, she will be gifted the money to use on something we deem appropriate (i.e. down payment on her first home) after she has turned 21.  It will be similar to a trust fund - just like what I had once I turned 21.

I am very happy with the way my parents managed our college funds and plan to take a very similar approach. 

 

LVBlvd

Unless circumstances beyond our control happen, college is not optional for our 3 children.  Education is of the upmost important in my family, and that will be communicated to our kids from an early age.

If they had the mental capacity to go to college and chose not to, we would certainly not just give them money. 

MrsACT1

The money we have is save for college and college only.   If he goes to college on a scholarship he will get the money in his account.  Education is very important to us and DS will know that.

elliek05

My DD has a  child trust fund (with money from the government deposited at birth, 3, and 7 plus money that family has given her and money we have put in periodically) she can get at 18. If she's going onto further education, we want her to use the money for that, and if not, she can use the money to start her life (furniture, car, whatever she needs). My DH is the first one in his family to get a degree, so it's not like there's a huge amount of stigma for her to go down one route or another.