Talk to me about saving for college

Re: Talk to me about saving for college

• [Deleted User] member

  July 2014

  Ugh.  I need to start doing this.  

  
  

  My plan is to take half of what I am spending on daycare and have it invested somewhere.  Not sure where yet.  

  
  

  With a 529 are they obligated to certain schools?  What if they don't need all the money?  What if they don't go to college?  

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• [Deleted User] member

  July 2014

  It's important to me as well but not everyone is college bound.  

  
  

  He could decide to enlist, do a service job (there is money in some skilled labor jobs) or flit through half assing and partying it up (which I am not paying).  

  
  

  Also, scholarships.

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• steponalego11 member

  July 2014

  I set these up for a living. Often times we recommend opening one for all your children for tax purposes but most people keep them separate, I would consult your tax professional on that.
  
  Why People like them: the money is technically still the parent or the person opening the account. Unlike a savings account or a UGMA it never becomes the childs directly. So if JR goes crazy and wants to run off with a stripper at 19 he can't touch it and the adult can change the beneficiary at any time.
  
  Why people don't: in order to not get the tax hit on it - the funds have to be used for a college education. You can transfer it to another student( sibling, cousin, niece, whomever)  but the tax hit for not using it for college expenses defeat the purpose a bit. So if you have been taking jr's birthday monies and things like that he wants to join the service or trades you have to deal with that. For my generation and the ones getting out of school now - college wasn't much of a choice - so 529 were a no brainier but it remains to be seen what that will look like for my DS generation.
  
  TBH - despite what I do I still don't know what my choice of investment will be for DS.
  

  

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• [Deleted User] member

  July 2014

  Thanks.  That helps a lot.  

  
  

  College was a no brainer for us.  But with loan rates rising and the job market sucking, trade schools are now a more sure bet for some.  We don't know what the conditions will be in 15 years.  If he doesn't use it for school, I want to be able to invest in him another way (opening a business, down payment on a house, etc).  

  
  

  Can I just do what my parents did?  "You are going to college.  Now get a scholarship to pay for it"

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• bitsybubbles7 member

  July 2014

  I need to do this too.... Where the hell did my to do list go?
  
  

  
  

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• NeneCakies member

  July 2014

  We started the Gerber Life College Plan. It's pretty much a glorified savings account. No tax shelter but it doesn't have to be used for college.

  

  
  

  
   

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• steponalego11 member

  July 2014

  Moidonna said:

  MarlaSinger& said:

  It's important to me as well but not everyone is college bound.  

  
  

  He could decide to enlist, do a service job (there is money in some skilled labor jobs) or flit through half assing and partying it up (which I am not paying).  

  
  

  Also, scholarships.

  I understand and who knows what they will want when they are 18, but our world is changing and it will be very difficult to find a job making decent money without some post-secondary training by the time the girls have graduated high school.  I'm hopeful they will go to school.  It doesn't have to be a four year college necessarily.
  

  Just as an FYI - some 529  plans do require it be a four year college.
  

  

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• [Deleted User] member

  July 2014

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