College Fund

michelle_1221

I know it's early to think about this, but is anyone starting a fund for your LO?  Any 1+ mom's that have done this already?  If so what are you doing? 

bpwife&mama

I am a FTM, but we have started to think about starting one very soon after he is born.  We have been advised on starting a 529 for our LO.  It can only be used for college/school.

FarmvilleLover

For now, we have just been saving cash gifts and parts of our bonuses over the past few months in a regular savings account at ING.  We haven't decided what to do yet so until we know, we'll leave it in there.  We do know that funding OUR retirement will come before funding any significant college savings funds though.

Because the market is pretty volatile and bc we are in a state that doesn't give any tax benefits for contributions to a 529 plan, we probably won't do a 529.  We'll probably just have a separate investment account (taxable) that is set aside specifically for the baby (and future kid(s)).  Our plan is that by the time they are in college, we'll be financially secure enough to be able to fund their education out of pocket, or help them as much as we can.  And the account we've saved into for them can be there for them to subsidize that or to be there for when they graduate.

I'm not a huge fan of 529's, at least right now, bc of the risk that the child may never go to college and then it goes unused and then penalties apply.   So in a nutshell, we're looking more to a regular taxable investment account or a UGMA type account (also currently taxable).

rebelina1

I started a 529 plan for my DD when she was born through College Invest.  I will do the same for DS once we have his social security number.  I have a certain amount withdrawn from our checking account each month to go to the 529 account.  I also deposit any money my DD receives as gifts into the account.

Lhand11

We will be doing a savings account for sure. I saw something a little while ago that children with a savings account are 6xs more likely to go to college. It is never too early to start planning! Savings bonds are a good idea too. My dad did that for me and it helped me put a down payment on my house and pay for my wedding. 

luckylindy

We are dedicating a savings account. We started it a few months ago and have been allocating about $300/month to it and will continue to do so until he turns 18. If he chooses to go to college, then he gets the full amount of money to apply towards tuition. If he does not go to college, he will get some of the money to attend vocational school or other school. If he does not plan on higher education then those funds will be applied towards his wedding or honeymoon or something similar.

We don't plan on telling him that he has it until he is right on 18. We want him to work towards getting scholarships and the like as opposed to relying on Mom and Dad. 

Indiechixor

We have a 529 account through ScholarShare... it's pretty awesome, we've had it since he was born and already contributed $600! Very happy with the choice.

SoonToBeMsP

luckylindy:

We are dedicating a savings account. We started it a few months ago and have been allocating about $300/month to it and will continue to do so until he turns 18. If he chooses to go to college, then he gets the full amount of money to apply towards tuition. If he does not go to college, he will get some of the money to attend vocational school or other school. If he does not plan on higher education then those funds will be applied towards his wedding or honeymoon or something similar.

We don't plan on telling him that he has it until he is right on 18. We want him to work towards getting scholarships and the like as opposed to relying on Mom and Dad. 

Pretty much exactly this. I like having a savings account over a 529, because there are no rules/limitations to them.