Best college savings plan

snookums2013 · October 2013

What's the best college savings plan to start for a baby? How does it work and how much does it yield over time? How do you go about getting started? Thanks!

slh6363 · October 2013

We are also doing the 529, as was recommended by friends. We just went to our bank, but don't have it set up yet bc you need the ss number. He just explained it to us and went over all the options.

kelseyjohnston · October 2013

I just kind of decided to start a savings account for him and add $25 every month...nothing too fancy but at least I can get interest on it for him.

snookums2013 · October 2013

For the 529, does it make interest too? Do certain banks have better plans than others or is a 529 the same no matter where you open it?

sschwege · October 2013

LizB8943 said:

The 529 does grow interest...but it can also take losses, depending on the markets. It's just like a 401(k) or other investment plan. The money you invest is being used to buy mutual funds, etc, and you can choose your level of 'risk'. Over the long haul, though, you're going to come out way ahead. We've had ours about a year and have definitely seen the #s moving up, which is nice.

They do vary by state...for example, our plan is set up through some western state (Idaho, maybe?) but we are residents of Florida. And our children can go to college in yet another state--so you are not locked in like a "pre-paid" state college program.

Here's a website that can tell you more https://www.collegesavings.org/whatis529.aspx

Do you have to do a 529 for each kid or can any of the children have access to it? And is it just for college or any kind of education, for example culinary school or something?

CaliforniaDream87 · October 2013

We set up a 529 when I was 5 months pregnant.

slh6363 · October 2013

@sschwege it can be used for a variety of educational expenses, not just a traditional college. You can also change the persons name it's in for example if child A does not end up having any allowable expense to use it for, you could change it to be in child B's name. Im curious how those of you opened it before LO is here? Is it in your name and not the child's?

thedash · October 2013

We also have a 529. I started it through the state we live in because there are tax benefits and it's a good plan. We have excellent state universities so hopefully our money will go far! We're hoping to do some prepaid tuition as well but it's pricey.

Jason&Erin82507 · November 2013

Both of our girls have a 529... Ours are through trowe price, but many banks offer them.

Best college savings plan

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