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Have you started a college fund account for your children?

My husband and I haven't, and my son is 9 years old so we were going to start at least putting back 20 to 100 a week back for his college. I feel behind though like I've waited too long. Do your kids have college funds?

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Anonymous

Asked by Anonymous at 10:51 AM on Jun. 9, 2010 in Just for Fun

Answers (27)
  • Your best bet is the prepaid college funds, but you are starting out a bit late, but I would inquire anyway, the best thing it does is freeze the tuition at the current rate it is when you buy, which is a plus, since every year it goes up!!!
    older

    Answer by older at 11:00 AM on Jun. 9, 2010

  • we started an education fund - I can't remember what its called now but yes, we did it when our son was 6 weeks old , we both get 15 a week taken from our check also - sadly because of the economy, it hasn't made any...
    maxsmom11807

    Answer by maxsmom11807 at 11:03 AM on Jun. 9, 2010

  • Yes, we started one for each of our children around their first birthdays.
    andrea96

    Answer by andrea96 at 11:04 AM on Jun. 9, 2010

  • I wanted to start it the day they were born, but unfortunately we were poor back then. Ha! We could barely afford to breathe, let alone store money away in an account. We are a lot better off now, but still don't have the money to put away for them. I am trying to find a job to add more financial comfort to our lives, but nobody in my area is hiring.
    JazzlikeMraz

    Answer by JazzlikeMraz at 11:06 AM on Jun. 9, 2010

  • I started them soon after they were born. My dad also made accounts for them that he adds to on holidays. He just gets them a small gift and puts money away for them instead of buying them a ton of toys. (They have a million anyways! lol) But seriously better late than never. Any amount you can save will be helpful.
    jenae_gist

    Answer by jenae_gist at 11:18 AM on Jun. 9, 2010

  • As a parent of two college graduates, if you are going to save them money do it in such a way that their senior year in highschool you can take it out so it can't be counted against them for financial aide. You will find that every penny you have saved will only hurt them in the end. We put ours in a savings account and completely removed it the December of their junior year. Any scholarships they get will be used against their eligibility too, just to keep that in mind. If I were to do it all over again, it would have been better if we wouldn't have saved a penny. Any money you and your husband have together in savings and such will also be counted against any eligibility. It comes right off the top. Talk to a financial aide person at a college to find out the best route to go. Even though your child is only 9 you will be informed and can make an educated choice.
    Anonymous

    Answer by Anonymous at 11:18 AM on Jun. 9, 2010

  • Yes, mine is 15 mos. and we have a 529 college account that we put $50 in each month! I'm not about to wait until she's 15 and we're both broke scrambling around for money. My own parents didn't save one dime for me and I am strapped with loans.
    danielp

    Answer by danielp at 11:20 AM on Jun. 9, 2010

  • By financial aide, it mean loans as well as grants, etc... My nephew won't qualify for any student loans either due to their family income and small amount of savings. His mother has RA, they can't even afford health insurance and the father is paying child support to another family in a single income household. I would encourage you also to talk to a financial aide person at a college. There are ways around it so your child can actually go to college.
    Anonymous

    Answer by Anonymous at 11:21 AM on Jun. 9, 2010

  • The college loan program and financial aide programs have all been redone and things have changed significantly. There are more programs available, but yes they are right, don't put the money in anything that can be considered an asset. Any money available can disqualify your child from eligibility. If you can actually save up enough to pay for it 100% I say do it, but if you can't be very careful. Books, tuition, room and board, food, insurance, parking permits, university fees, lab fees, activity fees, paper fees... its not just the tuition number they give you. It is very surprising with all of the "extras". Other things to consider is if you are self employed, the assets of your business can also count against your child.
    Anonymous

    Answer by Anonymous at 11:27 AM on Jun. 9, 2010

  • The point of starting one early is so that you can pay for all of it! I wouldn't have started one if I were still looking for financial aid at the end of it...I did not qualify for anything other than a bare loan for tuition even though my parents had no college savings for me. Save the money now and then pay outright.
    Anonymous

    Answer by Anonymous at 11:30 AM on Jun. 9, 2010

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