Comments on: Poll: How Are You Saving For Your Child’s Education?

By: Savings Accounts Girl

Savings Accounts Girl — Tue, 07 Jul 2009 08:02:53 +0000

I don’t have any children – but when I was in college I had scholarship money and federal grants to survive on. I also had to work a full time job while going to school full time – so it’s very doable. I only had to barrow about 3K in total so I’m pretty debt free. Since I did it, I’m sure soon to be college students will be able to survive. It’s also a good idea to start at a community college and then transfer – that way the cost wouldn’t be too much. I didn’t go that route – but I had plenty of friends who did that and were able to save thousands of dollars.

By: Title Insurance Florida

Title Insurance Florida — Tue, 07 Jul 2009 05:01:13 +0000

Currently not planed for kids only because of funding as you said all thing becomes very costly and specially education, but i have started saving in such plans like 529 so i can secure future of child and avoid tension. your post very helpful who planning for child or already having kids.

By: pays to live green

pays to live green — Mon, 06 Jul 2009 02:16:41 +0000

I don’t have any children yet, but as others have said, I am going to start putting money into a 529 as soon as my children are born. I do not want to leave my kids with large loans as soon as they get their start in the world.

By: Earn Money From Internet

Earn Money From Internet — Fri, 03 Jul 2009 07:26:18 +0000

Obvoiusly, I voted for I don’t have children yet. I’m only 16, . Otherwise, I think the 529 plan would be the most valid approach.

If I look at this from my parent’s point of view then it would be scholarship. I’m pretty confident that I can get a scholarship easily in college.

By: shiwala

shiwala — Fri, 03 Jul 2009 02:55:47 +0000

I really wanted to start a 529 plan for our baby daughter this year using our tax refund but instead used the money to pay down some credit card debt. I keep hearing that you shouldn’t start funding college savings plans until you max out your own retirement accounts.

By: Ivan Ortiz

Ivan Ortiz — Fri, 03 Jul 2009 00:36:29 +0000

I’m saving through a whole life policy with a very strong mutual life company(not one of the options). Many people who have no idea how whole life policies downgrade this option because they believe it has a low rate of return. Although this is true of the internal rate of return, the access to cash on a tax-free basis in effect doubles any return.

Most parents don’t know that a 529 plan can hurt a child’s chances of getting financial if the 529 falls short of funding the school they wish to go to. Since the 529 plan counts as an asset in the child’s name, it will reduce their ‘need’ for aid. Whole life policies do not count as an asset, because it is normally owned by a parent.

Lastly, if a child doesn’t end up spending the money at all because they either got a full ride, went to a cheaper school, or just plain didn’t go for whatever reason, the 529 is going to be drilled on taxes when you try to take distribution. One note, the 529 can be transferred to any direct relative of the child – parent, sibling, or child, so that is another option.

By: Remote Office

Remote Office — Thu, 02 Jul 2009 19:02:15 +0000

I don’t have children yet, and I don’t plan on having any in the future. Planning for my own and my wife’s retirement (many, many years from now) is enough work. I can’t imagine the stress of trying to save for a child during this economic downturn. Times are tough and the latest unemployment figures today bear that out.

By: Rebecca Schreiber, CFP

Rebecca Schreiber, CFP — Thu, 02 Jul 2009 16:22:33 +0000

I’m saving through a Roth IRA in my name as well as a brokerage account. The Roth IRA won’t be considered an asset by the schools (who now ask about 529 plan balances even if the government doesn’t) and I can invest at a much lower cost than a 529 plan even with the tax deduction. I’ll withdraw contributions at the time and see where we stand. My son won’t be in college for 14 years and I have no idea how the college system will change but I do know I will still want to retire.

By: Mr. Meef

Mr. Meef — Thu, 02 Jul 2009 15:19:24 +0000

We are expecting our first child in September and will be opening a 529 account and will be using Rosa’s strategy. Be sure to look at which state sponsors it for any potential tax breaks, mutual fund expenses and contribution minimums. I also pick up loose change others are too lazy to get, and have started her savings account at our credit union with this years findings to date. We will also set up a Upromise account, and if I had my druthers, I’d buy a municipal bond, with a maturity corresponding to her college entry, to have relatively safer tax-free money waiting for her to help with college costs. Unfortunately we don’t have enough money to do that strategy.

By: Rosa

Rosa — Thu, 02 Jul 2009 15:09:34 +0000

I put “I’m funding a 529″ but in reality, his grandparents are – we started it as soon as he was born so when people asked what they should give him, I could say “he doesn’t need anything but if you want you can put some cash into his college fund.” It’s working beautifully – we do fund it some ($50/mo) but most of it has come from birthday and Christmas gifts.