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The Family Piggy Bank The Family Piggy Bank

babies college savings?

Posted by on May. 29, 2014 at 1:03 PM
  • 10 Replies

How much do you put away for your kids college fund?

by on May. 29, 2014 at 1:03 PM
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Replies (1-10):
ShandellsBaby
by Member on May. 29, 2014 at 8:56 PM

This is something I need to start doing just keep forgetting to do it.

brenatens
by Member on May. 30, 2014 at 7:53 AM
Quoting ShandellsBaby:

This is something I need to start doing just keep forgetting to do it.



We set up the account and my father started an automatic contribution to it. Dh and I pu a lump sum to start her out with, but we didn't figure out a amount for our automatic contribution... We are probably over thinking it by looking at how much college will be, how much money we need to get there, anf factoring in interest that the money would acquire...
clairewait
by Member on May. 30, 2014 at 10:09 AM

We have a 529B (?) and realized it is actually more profitable to just have one for all of our kids than separate accounts for each (it compounds and you can use the same funds for all children).

We started out with $1000 in it, and then try to add a little each month. Right now we're only doing like $150 a month, I think. There was a time when we had a little more wiggle room and were doing as much as $300. 

So needless to say, our contribution fluctuates, but we do try to put something in there every year. We also try to put some of our tax return into it ieach year.

eevers55
by Member on May. 30, 2014 at 10:39 AM

We have a 529 that we started with 1k and add 100 to every month since she was about 6 months old.
She also has a savings account on top of that where part of birthday and holiday money from relatives goes into so when she's a teen, she'll have a little money saved up for part of a car or a trip somewhere with friends, or money to help her move out when she's ready. Whatever.

ivf_blessed
by Bronze Member on May. 30, 2014 at 3:55 PM

I started a 529 account for each child as soon as I had their SSN #.  I automatically put $100/mo in for each child. I also deposit an extra $50 for their bdays & Christmas.

If anyone ever asks what they need for their birthday or Christmas, I tell them just write a check for whatever amount they want to CollegeAmerica.  My son was just able to deposit an extra $150 this month for his birthday (my extra $50 plus 4 other checks from family members).

brenatens
by Member on May. 31, 2014 at 4:29 PM
Quoting clairewait:

We have a 529B (?) and realized it is actually more profitable to just have one for all of our kids than separate accounts for each (it compounds and you can use the same funds for all children).

We started out with $1000 in it, and then try to add a little each month. Right now we're only doing like $150 a month, I think. There was a time when we had a little more wiggle room and were doing as much as $300. 

So needless to say, our contribution fluctuates, but we do try to put something in there every year. We also try to put some of our tax return into it ieach year.



That's smart to maximize the interest! How will you planning to divide it when the kids are old enough to go to college at different times?
brenatens
by Member on May. 31, 2014 at 4:33 PM
1 mom liked this
Quoting ivf_blessed:

I started a 529 account for each child as soon as I had their SSN #.  I automatically put $100/mo in for each child. I also deposit an extra $50 for their bdays & Christmas.


If anyone ever asks what they need for their birthday or Christmas, I tell them just write a check for whatever amount they want to CollegeAmerica.  My son was just able to deposit an extra $150 this month for his birthday (my extra $50 plus 4 other checks from family members).



We have been doing that with whatever cash she gets on birthdays. She has enough toys, However my family mostly gives toys...
clairewait
by Member on May. 31, 2014 at 10:24 PM


Quoting brenatens: That's smart to maximize the interest! How will you planning to divide it when the kids are old enough to go to college at different times?

Oh yeah. We initially opened two accounts (only had 2 kids at the time) but when my husband discovered that one fund can be used for multiple children he quickly consolidated. We're having child #4 in August, so we need all the help we can get!

We hadn't really thought that far ahead yet, but I think at the end of the day, money is money, so we will simply use it until it runs out. Shortly after we got married, we made a commitment to pay for our kids' college. My parents did it for me but my husband's parents did not do it for him, and it has made all the financial difference in the world to be educational debt free, you know? So anyway, we'll encourage each of them to get scholarships (my husband plans to bribe them with cars for this), but then we'll just pay and pray that everything will work out, as it magically has seemed to so far.

Up until this year, NC had some pretty good tax breaks for 529 investment, which they've just gotten rid of this year in the name of budget cuts. We are actually now making sure we max out our Roth IRA's before investing in the 529, mostly because dollar for dollar (with taxes) it will make us more. IRA's can also be tapped into early without penalty for a major life milestone (like college or a wedding) so if it came to it, we might do that.

Lifeismello
by on Jun. 1, 2014 at 12:34 PM
I've found that dedicating money to an actual named "college fund" can do more harm than good when LO is ready to go off to college. If they have to apply for financial aid, grants, or loans, the applications are based upon that money in college savings first, and then they go off of parents income. Having money saved in a dedicated college fund can seriously hinder the amount of aid or grants that you can qualify for, even if you need it. It's best to save money in a non-dedicated account, such as a plain old savings account (or, the old fashioned way, such as savings bonds or a safety deposit box). Sure, you will accrue much less interest over the years, but it's more beneficial in the long run when applying for aid/grants/loans. Just my two cents.
ivf_blessed
by Bronze Member on Jun. 1, 2014 at 2:57 PM

 I know - my Mom always said "It's no fun giving kids money."  But I think she has since realized that my kids are learning at a young age the value of a dollar.  Every dollar they receive (earned or gifted) is split into share, spend & save jars.  It works for us. She doesn't ever write checks to their college accounts, but that's ok - her cash gifts go to the jars and that makes her & the kids happy.  =0)

Quoting brenatens:
Quoting ivf_blessed:

I started a 529 account for each child as soon as I had their SSN #.  I automatically put $100/mo in for each child. I also deposit an extra $50 for their bdays & Christmas.

If anyone ever asks what they need for their birthday or Christmas, I tell them just write a check for whatever amount they want to CollegeAmerica.  My son was just able to deposit an extra $150 this month for his birthday (my extra $50 plus 4 other checks from family members).

We have been doing that with whatever cash she gets on birthdays. She has enough toys, However my family mostly gives toys...

 

ivf blessed
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