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College funds

Just wondering how the parents in here are preparing for your children college. so far we put $4700 into a saving account for our 2.5 year old daughter. I feel like I'm not during enough, because I know college will be even more expensive by the time she is ready to start. any advice will be appreciated .

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natachact

Asked by natachact at 11:05 AM on Jun. 4, 2011 in Money & Work

Level 17 (3,370 Credits)
Answers (11)
  • I started a fund when they were born, we've put all gifts of money that come from baptisms, communion, ect into them. We've also put in additional funds at different times and bought stocks in certain companies with dividends. What is there for college is there, we'll provide what we're comfortable doing but they will have to cover the difference. I think they have a good cushion.

    RyansMom001

    Answer by RyansMom001 at 11:09 AM on Jun. 4, 2011

  • Here in NC we have a web site that helps plan and set up funds so we use that. It tells us about how much they need, also helps identify scholarships and when kids are older they can be interactive with the website to apply for colleges, find colleges for their majors and help them plan with the money we have saved, scholarships and loans. I dont know how much college is going to cost by the time my 6 yr old goes, but I do know right now for my son to live on campus 45 min away would cost us around $8k.
    gemgem

    Answer by gemgem at 11:13 AM on Jun. 4, 2011

  • I think that is a pretty good start! I live in Missouri and we have an education fund set up through the state, the only thing is he will have to go to college in MO, but if Harvard calls hopefully it will be for a full ride,, LOL!
    kimigogo

    Answer by kimigogo at 11:14 AM on Jun. 4, 2011

  • I paid for my own college, and I believe that it's a child's job to take care of their own college costs.
    Anonymous

    Answer by Anonymous at 11:19 AM on Jun. 4, 2011

  • To answer anonymous: Some parents are pleased to give the gift of education to their children. For parents who are able to save the money, should they give the money to their children when their children can use it to pay for their college education, giving their children not only the gift of an education but of being as debt-free as possible after getting that education, or should they hold onto that money and leave it to the children as an inheritance. In which way is the money better used?

    To answer the OP, consider the interest rate that you'll get through different options. Is there a 529 plan in your state? Is there an advantage to putting the money into some low-risk investment (like a CD)? A savings plan is a good start, but the interest that you earn on that money is so miniscule, I'd look into other options too.
    evwsquared

    Answer by evwsquared at 11:37 AM on Jun. 4, 2011

  • In FL we have a pre-paid college fund which we started when they were 1 year old, which is when we coud start. It locks you in to the cost of college @ that time. We are paying $300 per moth for both boys...covers 4 years of tuition, 2 year of dorm costs plus taxes etc...start looking around for different plans.
    mkdirector2011

    Answer by mkdirector2011 at 11:54 AM on Jun. 4, 2011

  • It's great to save for college but make sure you are saving for your retirement too. A financial advisor I go to has told us that retirement comes first and then college. I know it's easier said than done. Just passing along ideas.........
    whitepeppers

    Answer by whitepeppers at 12:21 PM on Jun. 4, 2011

  • And I meant to add that a CD or money market will have a little better interest than a savings account. GL
    whitepeppers

    Answer by whitepeppers at 12:37 PM on Jun. 4, 2011

  • You could run your own business from home, team up with me if you are interested. I offer this to you, because being an Independent Rep. is an income opportunity that can be done part time. If you would like more information contact me,
    1northwestmom
    1northwestmom

    Answer by 1northwestmom at 4:51 PM on Jun. 4, 2011

  • First we're saving our emergency fund, then we'll start saving for our retirement, and then we'll save for him. I'm sure he'll be fine though. He's only 3 and so far his college investment has averaged about 10% a year... so I think he'll be covered.
    Erica_Smerica

    Answer by Erica_Smerica at 7:30 PM on Jun. 4, 2011

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