College Savings

kelly422 · April 2014

Some of you all opened 529 accounts. What is everyone else doing?

My concern about the 529 is this - what if my kids decide college isn't for them? I know I can withdraw that money, but then there are tax consequences and penalties.

BC&LM · April 2014

We started a 529. If they decide not to go to college, there are tax penalties on the interest earned but not the principal, if I understood my financial advisor right. If they get a scholarship, they can also use it for books, study abroad, etc.

momofcatan · April 2014

I know in Canada you can set it up so that any child of yours can use it.

nikel13 · April 2014

I started a savings account. I know it seems silly, but I want to have Lily learn the joys of saving when she gets older and make her a part of it. I put in $25 a month and all of her Christmas money went in. At 10 months old, she has over $400 already.

BC&LM · April 2014

araziza said:
I know in Canada you can set it up so that any child of yours can use it.

Oh this too--someone I work with said if your one kid doesn't use it, you can use it for the next and not pay penalties. I'm not sure if she was definitely right, though.

itsStackie · April 2014

This may sound crazy to you, but we are likely just buying stock for LO in DH's work for college.
It's a big corporation, and stock is privately owned. We may look into other options, but it's our best right now.

numbersgirl08 · April 2014

We aren't doing any separate savings for her now - it's lumped in with all of our other savings (including investments). That being said, we are very conservative with saving money and plan to have a lot saved up by the time she's headed to college.

numbersgirl08 · April 2014

Also, I don't expect to pay for the full cost of college if it stays like it is now. We won't throw down $60k a year for her to go to college - we will likely have a chunk of money (hopefully a good bit) and will tell her she can use it how it best fits her. If she gets a scholarship, then she can use it on study abroad or something.

And it might be an UO, but we will be highly encouraging her to go to college, unless there is something in her skill set and personality that is very very different than us. Perhaps if she had a very clearly laid out alternative plan, but we will highly highly push college.

numbersgirl08 · April 2014

Am I the only one who hasn't been given any money for LO? Only one time, and they specifically said to pick out a stroller with it. Otherwise, we've just received gifts. I have no problem at all with that - I'm just surprise to hear of people giving babies money! If she did receive some, I guess we'd put it in an account for her too. But so far that account would have nada.

nikel13 · April 2014

@numbersgirl08 My grandma is really into being fair. She gives each of her grandkids (including inlaws like H) and her kids $100 for Christmas. She wants to be fair and give her great-grandkids money too. My cousin has a 6 year old. She gives the $50 right now. My mom does the same with giving $100 to her kids, so she gives to Lily too.

I should have added to my saving thing that I hope that Lily will pick my alma mater, KU. They now have a generations scholarship where they give in-state tuition to any student who is a 2nd generation+ student.

amie444 · April 2014

nikel13 said:
@numbersgirl08 My grandma is really into being fair. She gives each of her grandkids (including inlaws like H) and her kids $100 for Christmas. She wants to be fair and give her great-grandkids money too. My cousin has a 6 year old. She gives the $50 right now. My mom does the same with giving $100 to her kids, so she gives to Lily too.

I should have added to my saving thing that I hope that Lily will pick my alma mater, KU. They now have a generations scholarship where they give in-state tuition to any student who is a 2nd generation+ student.

I had no idea about the 2nd generation thing at KU. We have a 529 and savings account. The savings account will be hers when she is about 10. I hope she uses it to save for a car. And we will encourage any college in the World except Mizzou.

BC&LM · April 2014

numbersgirl08 said:
Am I the only one who hasn't been given any money for LO? Only one time, and they specifically said to pick out a stroller with it. Otherwise, we've just received gifts. I have no problem at all with that - I'm just surprise to hear of people giving babies money! If she did receive some, I guess we'd put it in an account for her too. But so far that account would have nada.

One family member gave us a small amount of money for Christmas to put in his college savings, and my mother gives him $10 for each of the non-gift giving holidays like Halloween. (She said to put it in his piggy bank and take it with us on our vacation this fall for any toys or anything he wants.)

But other than that, it's been mostly gifts.

dmlk413 · April 2014

@amie444 what about K-State?

numbersgirl08 · April 2014

Interesting! @34blondie that's a cool idea.

When I was a kid, my grandparents always gave money to my parents for each of us for Christmas. They then bought us our presents from our grandparents from that money. If my parents did that we'd do the same - buy presents instead of saving the money? Do they get gifts too on top of the money?

amie444 · April 2014

dmlk413 said:
@amie444 what about K-State?

If they have a program that she wants to do like being a vet or apparel marketing, more power to her.

dmlk413 · April 2014

majwv8 said:

dmlk413 said:
@amie444 what about K-State?
The Mizzou/kU hatred is on some other level that I haven't seen in any other rivalry. They really brainwash you if you go to either school.

m

I know, I got my masters at KU. DHs family is split between KU and KSU and there is some hard core rivalry there too.

amie444 · April 2014

dmlk413 said:

majwv8 said:

dmlk413 said:
@amie444 what about K-State?
The Mizzou/kU hatred is on some other level that I haven't seen in any other rivalry. They really brainwash you if you go to either school.
m

I know, I got my masters at KU. DHs family is split between KU and KSU and there is some hard core rivalry there too.

I would say the Staters hate KU more than KU hates KSU.

kelly422 · April 2014

@Steamboat1679 said:

529. In Colorado not having to pay state tax saves us 5%. If your DD gets scholarships you can withdraw the same amount without a penalty. The government is also allowing the money to be used for internet connections and computers. The 10% penalty can is only on growth and you can roll the money from child to child if needed. If you or your DH ever want to go to school you can use the money too.

I was just rereading these answers and I had to laugh at this

6 years of undergrad (4 years for my B.S., 2 for premed and EMT), 4 years of medical school, and 3 years of residency...additional school for me will likely NEVER be in my future!

ASmallWonder · April 2014

Add me to the "no one gives my kids money" group. We've gotten a little here and there from the great grandmothers (now gone) but it was stipulated that we buy a gift with it. I'll say it - we don't have savings accounts of any variety for the boys. We live fine but aren't able to make any meaningful contributions until we get more in our emergency fund.

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