College

MomlovesEloise · June 2011

Is anyone overly obsessed with planning ahead like I am? We want to start her college fund this year, but I'm not sure which route to go. Right now I'm leaning towards a 529 plan, but I'm not sure whether to go through the state or a private company like Gerber. I also don't want her to think that a 4 year college is her only option, so I don't want to get locked into a program (like Florida prepaid) that she only gets a portion of out money back if she decides not to attend.

H and I are also debating how much of her college to pay for. Should be pay for everything, just tuition, or just for 2 years? I want her to learn responsibility, but I'm not sure I want her stressing about money in her teens.

Anyone else thinking about this yet?

*BlackSheep* · June 2011

We havent discussed in depth on this but our state does match the first $100 of money put into an account for babys college. So I know we will put that for him and then I think any money that he gets for birthdays & holidays might go into there also.

We'll see.

Molluskwrangler · June 2011

Does the state fund lock your kid into going to that states schools?

Amandaluvs2Travel · June 2011

When I started my job they gave us an option to sign up for a College 529, this was before my LO was even a thought! Now that he is born I have it under his name! I agree, I hope he learns to handle his own finances and works hard for a scholarship. But I also think college will be crazy expensive in 18 years so I am planning ahead!

I should also mention I work at a University and have a degree in Higher Education Administration so college planning is always on my mind!

MomlovesEloise · June 2011

LovingBaz:
Does the state fund lock your kid into going to that states schools?

No. It just locks them into today's prices. And each year you wait, you're monthly payment goes up. If they decided not to go, go to a private school, or go to another state's school, you can withdraw your money, but there are all these fees. A couple of my friends got screwed why they tried to get their money back. Here's the link

https://www.myfloridaprepaid.com/enroll-now/plan-prices.aspx

ETA: We're probably going to do it, because college is going to be way too expensive in 18 years. We're leaning towards the 2 year plan cause we can afford $50 a month and not much more.

mrsfrates · June 2011

We are thinking about it also. I think we will start putting money in a fund now. My parents paid for all 4 years of my college so I think it wouldn't be right that we wouldn't do the same for her. We also live in Fl but I dont plan on doing Fl prepaid. HOpefully she will get some kind of scholarship to help out like I did, but if not we will be prepared.

Molluskwrangler · June 2011

MomlovesEloise:
LovingBaz:
Does the state fund lock your kid into going to that states schools?

No. It just locks them into today's prices. And each year you wait, you're monthly payment goes up. If they decided not to go, go to a private school, or go to another state's school, you can withdraw your money, but there are all these fees. A couple of my friends got screwed why they tried to get their money back. Here's the link
https://www.myfloridaprepaid.com/enroll-now/plan-prices.aspx
ETA: We're probably going to do it, because college is going to be way too expensive in 18 years. We're leaning towards the 2 year plan cause we can afford $50 a month and not much more.

Thanks for the info. We are not planning on staying in FL so it wouldn't make much sense to pay into that.

MomlovesEloise · June 2011

LovingBaz:
MomlovesEloise:
LovingBaz:
Does the state fund lock your kid into going to that states schools?

No. It just locks them into today's prices. And each year you wait, you're monthly payment goes up. If they decided not to go, go to a private school, or go to another state's school, you can withdraw your money, but there are all these fees. A couple of my friends got screwed why they tried to get their money back. Here's the link
https://www.myfloridaprepaid.com/enroll-now/plan-prices.aspx
ETA: We're probably going to do it, because college is going to be way too expensive in 18 years. We're leaning towards the 2 year plan cause we can afford $50 a month and not much more.
Thanks for the info. We are not planning on staying in FL so it wouldn't make much sense to pay into that.

You don't have to stay in Florida. We're not planning on it either. It transfers.

Aviee · June 2011

Im doing what my parents did for me (well,...what my father did). Open up a savings account and whatever DD chooses to put in there from gifts from B-days, that will be in there. Also, every year she'll get some from H and I. When she's older, she'll have to work and save her money and plan seriously what she will do. I'm not going to just give her thousands of dollars to go party lol

jolynn326 · June 2011

We are planning for it. We are going to be setting up an ESA for DD.

We want to be prepared to pay for all of her schooling. DH is changing his family tree - he is practically the only person in his family (either side) to have a college degree, and he will be the only one with a doctorate. Because of his specific situation and the debt he has accrued, we want our children to not be faced with so many odds. We want them to have opportunities to do whatever it is they feel led to do.

That said, we definitely plan to reserve the right to limit and/or regulate the money if necessary. But, to be honest, if our children haven't learned to be responsible before the college years arrive, I highly doubt anything we do then will change that.

chicsub · June 2011

eddy321:

We plan on starting a savings account for A to help her learn to manage money. I personally probably won't start a college fund for her. We'll contribute to her savings, but I don't really trust the official programs in this economy. Also, I paid my own way through college, working 50-90 hours a week and graduating a year early to save tuition. I still managed to graduate with honors and have a great social life, and I think it taught me a lot about independence. I'd like A to have some kind of help from us, but we don't plan on paying her whole way because we want her to take some ownership of her future.

Of course, these are just ideas. We have no idea what the next 18 years will bring.

This is pretty much me to a tee! I want more flexibility than a 529 provides anyways.

CutieBean79 · June 2011

We have a 529 and plan on saving for a four year degree. If she decides on something else no problem.

Fergie+1 · June 2011

We've started a savings account specifically for Lucian. H and I have already agreed that we'll give Lucian one of our vehicles (not a shiny, new ride- one of the vehicles we currently own) at some point after 16. As far as paying for college, not sure. I don't want to just hand a teenager thousands of dollars and hope he spends it on school, y'know? Especially if he's driving a car older than he is. We'll figure something out eventually, but just keep building the account in the meantime.

christyp80 · June 2011

Audrey has a 529 set up by my parents, and they're contributing $5000 a year until she gets out of high school. I am very blessed to have generous parents who will set a separate account up for each of their grandchildren.

We also are starting a savings account for her that we can add additional to.

JLB24 · June 2011

christyp80:
Audrey has a 529 set up by my parents, and they're contributing $5000 a year until she gets out of high school. I am very blessed to have generous parents who will set a separate account up for each of their grandchildren.

We also are starting a savings account for her that we can add additional to.

Same here!

always4278 · June 2011

I plan to do what my mom did for me. She and my Dad invested the money with the advice of a financial advisor and it ended up making almost double what they put in over the 18 years. The understanding was that I could receive all the money that was intended for me to go to college whenever I needed but that once it is gone that is the end of financial help from my parents. Also the incentive to work and get scholarships was still enforced because the money would be a gift if I graduated with some left over. Then I could use it for my wedding or a trip or car or whatever. Also I had to be on track to graduate. I got a full ride scholarship plus book stipend scholarship and worked every year. I have one year left to graduate and will be graduating without any debt which was my parent's goal and gift to me. It also taught responsibility because literally every little thing I need that I can't afford comes out of that fund and once its gone, its gone. It really made me weigh how important certain things were. I'm planning to actually start saving once I graduate and my BF graduates. So in two years. I wish I could start now but it isn't possible. Also my parents did the same for my sister and she has used her money very frivolously and now will have to take out loans plus she chose a private school which is way more expensive than where I go. My parents aren't mad. The money was a gift and now my sister will have to support herself without any help. It was her choice.

chelle1980 · June 2011

We opened an ESA and a custodial account through sharebuilder as soon as we received his social security number. We are putting $30 per week into each account and will also deposit any cash gifts from his baptism, birthdays, etc. DH is a financial analysist so he is in charge of investing the money. The ESA does not have a limit as to how much we can save and the custodial account allows up to $1900 a year to be deposited. We opened the two accounts because we do not want to save too much in the ESA and then he gets a scholarship or decides to go to a state school. My husband went to a state school for his bachelors and masters and has a great job. The money in the ESA must be used towards education or there are fees and penalites to withdraw. The custodial account can be used for anything so if there is not enough in the ESA , he can use the money in the custodial account to pay the rest. My parents helped as much as possible and I worked a lot in college. I commuted to save money, had a scholarship, and 9 years later, I am still paying my student loans. DH also worked and is still paying his loans too. I do not expect to hand him a ton of money and say go nuts. I also will not tell him how much he has until he starts looking at schools. I want him to work hard in high school and try for a scholarship. I also plan that we will manage the accounts and pay his tuition for him. The money that is left in his custodial account after he graduates will be his to do as he pleases. I would love for him to use it towards buying a house. We plan to open the same accounts as we have more kids. We also save in a roth IRA as a backup because that money can be used to pay for school. We plan to pay for as much of our children's college as possible and would love to pay for it all. There will be rules in terms of them keeping their grades up.

ABizzity · June 2011

We are going to set up an account but I am not sure what kind yet. I want it in place by his 1st b-day. We already have a couple hundred dollars that he has received as gifts to open it with but I need to do my research. Depending on the circumstances and whether he has scholarships to help out or not, we will pay for either tuition or rent but we will not pay 100%, he will have to work. I will not just hand over the account, I will pay monthly, quarterly, by semester, whatever. We have 18yrs tio figure out the details, LOL. It is really important for me to provide this for my children because my parents were never able to do it for us and I racked up a ton of debt and my siblings never even went to college. I want my children to have the opportunity to go where they want to and follow their dreams.

snowybride08 · June 2011

My husband's job will allow her to go to college for free, but I'm not sure what we'll do if he changes jobs. Maybe she'll be a great basketball player?

mj+hl13104 · June 2011

kdodge423:
Fergie+1:

We've started a savings account specifically for Lucian. H and I have already agreed that we'll give Lucian one of our vehicles (not a shiny, new ride- one of the vehicles we currently own) at some point after 16. As far as paying for college, not sure. I don't want to just hand a teenager thousands of dollars and hope he spends it on school, y'know? Especially if he's driving a car older than he is. We'll figure something out eventually, but just keep building the account in the meantime.

That's kind of our issue too. That's why we are going with something that if he does go and wants to use the insurance policy to pay off any loans, he can. Or he can keep it and do as he pleases. If he's doesn't go, we can keep it and cash it ourselves (or if something would happen and we would need the money for some other emergency purpose, we can get it). He will know nothing of that policy until he graduates.

Whatever we decide to do, she won't know about either. I'm hoping this give her incentive to work hard for scholarships, grants, etc.

None of my family had gone to college, so I had to figure it out on my own. When I messed up and lost my scholarships, My parents could have paid for me to continue, but they didn't. I had to work to pay for the rest of it.

I feel that these two incidents have to led me to be a more self-sufficient person than I might have been otherwise.

Jenniferk08 · June 2011

I have a 529plan for MJ and Upromise. My parents have also set up a 529 as well. Whatever we save will have to be enough. Mj will have to take student loans for anything else.

skio · June 2011

lol, I've thought about this too. We started a savings account for DD this week, actually.

We're just doing a savings account for now and may switch to another kind of account with higher interest in the future, but getting it started is what counts. I also have no idea how much or what we're going to pay for. I think we're going to save X amount for each of our children (say, $40-$50k?) and let them choose their college, then pay for what we can with said X amount and have them cover the rest via working and/or loans.

This is what my parents did for me. They had a certain amount saved and when I really liked the $35k/year school, they sat me down and had the "loan" talk, where they basically told me they could not afford to pay for that and that I'd have to take loans if I wanted to go there. They were not threatening at all and left the decision up to me. I ended up choosing another school that was just as good academically but wayyy less in tuition, and they were able to cover all four years of tuition and room & board for me. I worked through college to pay for my own, uh, "extracurricular activities," lol. Needless to say, I'm incredibly grateful and hope to be able to do the same for our kiddos.

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