College Savings Question (Sorry if this has been discussed recently)

jinnymb

What is your advice for College Savings?  Are you doing it?  How often are you contributing?  What type of account are you using?

We are finally ready to start saving for their future endeavors whether it be college or not and are not sure where to start.  We would meet with a financial planner but we are squared away on every other topic.

We currently put their birthday/gift money in an ING but they said they don't do any college type savings deals.

Thanks!!

dbsk8dance+

We have a 529 that we contribute to monthly as well as some CDs. We decided to split it so that we have a bit more flexibility. 

LoCarb

DD's have 529 plans as well. They are in another state and when DD decides to go to school she doesn't have to choose one in that state, it can be anywhere. I have to contribute monthly in order to keep it open-the minimum contribution is $25/monthly. Anyone can make donations towards it.  We ask the G-parents to gift money for b-days recently.

zeptattoo

We also do a 529.  Check out what your state offers in terms of plans, but know that just because you live in one state doesn't mean that you have to choose one of that state's plans.  For example, if you live in MD, you can still choose a PA or VA 529 plan.

I tried also to start one with our bank and they had nothing.

LoveEeyore

We have a 529 for each child and additionally a mutual fund for educational opportunities/expenses for all 3.  We typically shoot for  a set amount each year in the mutual fund, each 529.  This year  we got a killer tax refund and were able to do a bit more.  At the end of the year if we don't hit the minimum we set for ourselves, we pull from our savings and "top it off."

 

groovygrl

Our kids have a savings account but the bulk of our money is in a variety of investments that we will be able to use to take their college $ out when the time comes, but none are specifically earmarked as being their college savings, just our overall savings & investments.

schnappycat

We also have a 529 plan for both kids. We contribute monthly (automatically withdrawn), so it's very hassle free. 

MammaBear81

Depending on your state (and you plans for the money) you can choose from 529's, UGMA/UTMA's or custodial accounts.  Custodial accounts have the most flexibility because they don't need to be used for school.  Deciding between UGMA's and 529's comes in when you are applying for financial aid.  529's are considered "your money" whereas UGMA/UTMA's are considered your child's money, which affects how much financial aid your child is eligible for.

As for how much to save, that depends on what you can comfortably afford.  If you do with 529, UGMA/UTMA make sure that you don't "over do" it because there are big penalties for using the funds for other reasons than school.  Custodial accounts can be used for anything, and you have full control of the money until they turn 18.  Hope that helps.

jinnymb

Thank you all!!

Westing18

we have a 529 and contribute monthly, automatically it is withdrawn.

Our finacial adviser also gives us postcards to send out family members on special occasions so they are able to contribute as well and all our families love having that option versus getting toys that he doesn't need.  

mulatta72

We just set up a 529 for DS last month and will so for DD when she's about 1.  It comes out automatically out of our account.  Super easy and hard to touch since there's a penalty if its not used for college expenses.

Krista123105

We contribute monthly to a 529 plan for DS.  It's automatically taken out of our checking account every month, so it's easy.