- Pregnancy
- Baby & Toddler
- Parents
- Getting Pregnant
- Baby Names
- Product Reviews
-
Registry
- Community
-
More
Want a personalized experience?
Download the free app
August 2015 Moms
JNOVA2015
member
College
JNOVA2015
member
So I know it's super early days, but have any of you started a college savings account for your LO? If so, are you using a state 529 plan, or something else? I know there are a variety available, but every time I sit down to look at them, LO wakes up! Just curious if anyone has already looked into this!
Re: College
I assume the finaid eligibility issue would present itself whether you used a 529 or not, since they'd look at the parents' savings even if they're not in a designated college plan. There will always be more for the first kid, then less as it gets spent...Or was there some other issue?
Looks like everyone is going with 529s! I'll have to talk to DH and look at opening one.
BFP #2 4/13/10. Bridget born 12/28/10
BFP #3 Finn born 8/11/15
[url=http://www.thebump.com/?utm_source=ticker&utm_medium=UBB&utm_campaign=tickers][img]http://global.thebump.com/tickers/tt1cb8c4.aspx[/img][/url]
For any of you in MA, the news said and IDA plan might be better for us (again not sure why, this is all DHs job to look into). I also know that most states treat a 529 like a 401k, except MA. They consider it taxable income.
I know this sounds horrible but we probably will not set funds aside for her college. My take on it is it is up to the child to get scholarships if they want to go to a 4 year fresh out of high school, otherwise she will be going to community college for two years and then finish up at a university if she wishes to continue for a bachelor's.
If she is able to score at least a half ride to a 4 year, we will help to pay for the remainder then, but will be expected to have at least a part time job to help out herself.
I have a really negative outlook on the current system of college education and as far as I'm concerned it is a scam unless you are going into medical, engineering, law, or something where a license or certificate is needed. I don't want to see us or her go a lifetime into debt over a useless education. If something changes in the system, I'm all for it. But I'm not having us or her pay 50k or more for a degree that is no better than 5 years of on the job training.
I made a lot of mistakes with college and long story short I got taken for a ride by a school that lost its accreditation yet I still have to pay back 60k and I couldn't even get my degree. I was able to put my credits toward an associates degree at an online school, so when it was all over, I paid 65k for an associates in criminal justice.
All of this was my own fault for not knowing what I was getting myself into. My goal for my children will be to make them understand what they are going to school for and to earn it.
Experiences.
What experiences do you think you missed? I was in your boat where I overworked myself....but I felt most people in my major did the same thing so I kind of just fit in. I agree with you that you can learn the value of education ( and even get some work experience) without having kids pay all of it. I kind of feel it's my responsibility not to start my kids life in massive amounts of debt and allow them a chance to take that unpaid internship if it helps them get ahead! (Not to mention our income probably disqualifies us from any aid for our kids).
What experiences do you think you missed? I was in your boat where I overworked myself....but I felt most people in my major did the same thing so I kind of just fit in. I agree with you that you can learn the value of education ( and even get some work experience) without having kids pay all of it. I kind of feel it's my responsibility not to start my kids life in massive amounts of debt and allow them a chance to take that unpaid internship if it helps them get ahead! (Not to mention our income probably disqualifies us from any aid for our kids).
Internships, networking events, fun with friends, ect. I literally had no time for anything other than work or school. That was my life. As stated, to each their own but I find nothing wrong with assisting my children to accomplish their goals if I'm able too.
At the same time, of course we need college educated people in our society, so it's important that people aren't held back from going due to finances.
Anyway, I don't have a savings in place for my kids at this time. I honestly haven't even looked into it. Maybe I will, maybe not. I went to an expensive private college. I took out some loans and my parents took out loans for the rest. I'll be perfectly honest, I have no idea how much $$ they took out. But I also got a lot of grant and scholarship money. All in all I pay about $300/month on my school loans which isn't bad at all in my opinion. As far as when I was in school, I worked part time just for my car and spending money, but I wasn't working for school money. I didn't have to start paying my loans back until I graduated, so that was no big deal. The only thing I had to pay for while I was in school was books.
So my plan for my kids is roughly the same. They can take out some loans and DH and I can either pay for or take out loans for the rest. We'll figure it out as it gets closer. More importantly, I'm going to make sure my kids have a clear idea of what they want to do before they go to college (and if that means taking a few years off to figure it out, that's fine) and they need to make sure that the jobs are something there is a need for so they won't have too much difficulty finding a job after graduation.
With that being said, if my child shows real interest and wants to pursue a degree that will pay itself off and makes a huge effort for scholarships through academics or sports, then we will dip into savings to help. If she shows real promise and wants to be a doctor, I will do everything in my power to make that happen.
To each their own, but I'm not going to send my kid to a 4 year just because it's the thing to do. If they finish high school and have no idea what they want to do still and/or don't have any substantial scholarships, they will do their 2 years at community college and then we will see about finishing at a university.
My brother had the same deal but needed to use part of his money for legal fees when he had a little too much fun in college and it was great that he had that option with his money and he could take out student loans to pay for tuition and didn't accrue any interest until after graduation versus taking out loans to pay for the lawyer that would have high interest rates. Of course, that was a parenting choice my parents had to make and I could never imagine my dear sweet son ever needing to use his money for legal fees but I like the flexibility of a mutual fund over a 529.
My parents had small RESPs for me and I took out student loans. DH and I are still paying ours off and it sucks. If I can help alleviate some of that for my kids, I will.
If they elect not to attend college and have a plan - vocational school, on the job training, entrepreneurship, etc. that money could be used for a house down payment, wedding, business start up, etc. - but I would not release the money unless they were being productive and had a plan or dream of what they want in life. We're okay though if those plans don't include college.
I disagree that college is a waste of money though. Almost all professional jobs that I see posted require a minimum of a bachelors degree. Not just those in the medical field.
DH and I were both incredibly blessed to graduate college without any debt through a combination of scholarships, parental contributions and personal contributions. I can't tell you how beneficial that was. We wouldn't be even close to where we are today financially without that. We plan to do our best to save enough money so that we are able to do the same for our kids. That said, we aren't obligated to do that. So if they aren't making grades or are f-ing around too much then that goes.
My husband and I have both done everything on our own and everything we have, it's because of our hard work. We plan to open savings for our kids and put aside some $$ monthly but I don't see us paying for our kids' education. I hope they never have to acquire the debt that I have, yet I want them to appreciate hardwork.
I guess I'm torn on the topic.. N w baby frying my brain, I'm not sure exactly my thoughts right now. Def a topic to discuss w my financial advisor tho!
Anyways, im also a child that has a ton of loans because my parents stopped paying for school part way through. During the recession my step dad lost his job and actually took government assistance to go back to school to become an RN. Now that he has a job they have started repaying some of my bachelor loans, but I now have loans for my masters as well even though DH and I save and pay cash some semesters (others we just cant do it so loans it is). That being said I landed an awesome job after graduating with a simply communications degree. I couldnt decide on a major, bounced around, finally said screw it ill get my masters just tell me the quickest route to graduating and voila communications it is. My employer is now grooming me for operations and im working my ass off to get it and the hefty salary increase that comes from it. Unfortunately because of our situation DSD and LO dont have funds set up yet as we have my school debt to deal with BUT im working so hard everyday to get ourselves where we need to be financially to help them out. My only rule is I wont pay for partying and bad grades. What I do to help will all depend on each child and their determenation to do well in school. As long as they are making good grades ill foot the college bill because the debt I have right now sucks and I cant start savings for them due to my debt right now. I dont want that cycles to continue for their children if I can help by keeping them out of that debt.
We plan on paying for LO's college education (assuming he doesn't get a scholarship) as long as he shows that he is going to work hard and take it seriously. I want our LOs to get to experience college but I hope that they put their studies before everything else. My parents didn't want to waste their money and always made it very clear that if we failed classes, we would need to re-evaluate and decide if we were really ready for college. There are so many things kids can do, without contributing financially, to help provide for their education. I graduated high school with 36hours towards my degree from AP/dual credit classes and I expect our LO to do the same. I also hope he will apply for local scholarships. Most are very small but, they can add up quickly.