College Fund For LO, Need Input

mrsj0423 · October 2012

Have you set up some sort of savings account for college and or LO's future? Or are you planning to? If so, what kind of set up are you thinking? Currently we are trying to decide what route to take. We are looking at the 529, bonds, and a money market acct. but are not sure what to do. Just looking for some input and curious to know what you all are doing. TIA

JulesET · October 2012

We did a regular savings account for now and will do automatic transfers each paycheck. Once the balance gets higher we will look at a 529 plan.

ThePinkSuperhero · October 2012

We have a 529 in our state (NY) because we can get state level tax deductions for our donations.

temporalrobe · October 2012

we aren't starting one until we pay off our own college debt. took a page from SO on that one.

Laika0315 · October 2012

We put in about $10-$20 a month is a savings. We're waiting until I finish my degree and pay off my student loans before we save any major money for him.
We're setting up an account that he either has to use for college and if he doesn't choose college, to be saved for when he moved out of the house.

KarmB · October 2012

just a regular savings. the back automatically takes $25 out every month of my bank account and put it in hers and I try to ut a little in every check

aylafsu88 · October 2012

We are doing a 529. My DH does alot of investing and thinks the 529 is the best way to go. If it is used for college it is tax free on the growth. If for some reason LO does not go to college the money can still be used for other things but we will pay taxes on it. Our lawyer said it was the best way to go if we truly intend to use that money for college. We have loaded it up for this year and will put in more over the next few years.I dont even want to image what college tuition will cost when LO is 18!

GreenMonkey1 · October 2012

We're opening a 529 per our financial advisor's advice. We live in OH and there is a good tax benefit plus they can be used rather flexibly for post-secondary education purposes (i.e. not just tuition and/or fees).

Pandril19 · October 2012

We'll be opening a 529 although we're not actively funding it yet. Since the beneficiary can always be redesignated and we plan to have another child, I'm not too concerned about the educational use stipulation. (Hell, I love school - if she doesn't want to use it I'll take classes when I'm retired!)

My plan for actually saving the money is that as her daycare cost ramps down I'll put the drop into her 529. So at 1 year old when her cost drops from $250/wk to $200/wk I'll be putting $50/wk aside.

OUKatie · October 2012

I need to figure out what will be most beneficial for us tax-wise.

APendola · October 2012

nellrose:
I'm setting up an RESP for my LO. The best part is my provincial government puts in 500 dollars, then 100 at years 9, 11, and 13 I think?, and my federal government matches 20 percent of my contributions up to 500 a year. The really awesome part is the fed. gov't also pays me 100 dollars a month for each child under 6, so that's going right in there. Essentially I've got it worked out that the government matches their own money and pays for his education. Maybe see if there are grants or government programs where you can work out something similar?

I have this too! We put $50.00 a paycheque.

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College Fund For LO, Need Input

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