Comments on: College money: Are you saving in this economy?

By: Romase

Romase — Sat, 03 Oct 2009 22:23:43 +0000

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By: fk

fk — Tue, 15 Sep 2009 22:06:19 +0000

We did not invest in a 529 savings plan for our son’s college education. We lived well within our means, even below it, and saved. I was a sahm for many years, and just before he started high school, I went back to work. That was added income that we did not have in 15 years. He is a HOPE recipient and also gets scholarship money for his participation in a sports program. He has taken out a student loan and we’ve picked up the balance. His savings from the jobs he worked thru high school cover his social expenses. We’ve not yet decided if we are going to pay back his loans or let him do it after he graduates. Right now, he thinks they are his responsibility.

By: DB

DB — Tue, 15 Sep 2009 21:58:40 +0000

OT, here, sorry Theresa: But I just wanted to say how sorry I was to learn of Patrick Swayze’s death yesterday. He was such an interesting man, and many of us on the blog probably fondly remember him in “Dirty Dancing” and “Ghost”, as well as other popular films. He managed, in Hollywood, to stay married to the same woman for almost 35 years, and showed grace, courage and grit in battling pancreatic cancer. RIP, Patrick.

By: Christina

Christina — Tue, 15 Sep 2009 20:42:44 +0000

jct, I’m not saying everyone who has a child should have a 529 plan. I realize that a good number of people can be trained (arguably more effectively) in a career without going to college, and maybe even without having to enroll in a trade school, like it ant banks’ example. As I’ve noted, I don’t even have a 529 yet for my son, and I hope to have a couple more someday. I was just pointing out that the 529 doesn’t have to be used for a university, in the “traditional” sense. Certainly, if you need the flexibility, you shouldn’t have your money invested in a strict-use account.

And I’d like to jump on the “don’t put the money in your child’s name” bandwagon. But not just for FAFSA reasons. My husband and I married shortly after college and then learned that my father-in-law had multiple, high-dollar investments in my husband’s name. He was taking advantage of his son’s lower income tax bracket. We were not happy about it, but were more than happy to point out two years later that our tax bracket had caught up to his (which finally convinced dear old dad to move the rest of the money back to his own SSN).

By: kaab

kaab — Tue, 15 Sep 2009 20:40:31 +0000

I’m with jct. I’ll pay taxes and have control over my money. If my child decides not to go to college and wants to purse a non traditional career, I want him to have the money to do so. OR if he decides to be a bumb. I can pay for a trip or a car for myself and my husband with the money.

By: Becky

Becky — Tue, 15 Sep 2009 20:36:59 +0000

What is the best plan to save with if they are 7 and I know that the parents will not encourage them to go to college, but we as the grandparents will? I would like to make sure that the money (or some) is there when they are old enough..Any suggestions? Thanks..

By: jct

jct — Tue, 15 Sep 2009 20:02:37 +0000

529s can be used for trade school. But what if you child does not go to college at all? We have one child. We have no plans to have another. That train has definitely left the station. We needed the flexibility to spend OUR money the way we see fit. The 529 is just too limiting for our family situation.

By: DB

DB — Tue, 15 Sep 2009 19:37:22 +0000

I’ll chime in with the “don’t put it in your kid’s name” chorus. My son has worked since he was 11 years old as a soccer referee and as a lifeguard, and has put aside a nice chunk of change. If it was in his name, it would have been gone instantly on his first day of college — and at the end of four years, he would have nothing, except a college degree and a hope of graduate school. It was a nice chunk of change, but compared with the tuition and fees at most college, it was a drop in the bucket.

By: ant banks

ant banks — Tue, 15 Sep 2009 19:35:57 +0000

CHRISTINA,

i think that the 529’s can be used for trade school, but i think that most parents are under the notion that there child is going to COLLEGE/UNIVERSITY.

i have a niece who is a junior in high school and her high school has partnered with a trade/tech school. she attends school until 2 and then goes to the trade school from 2-5. when she graduates she will be a dental tech and employable right out of high school, all without a 529 plan

By: Christina

Christina — Tue, 15 Sep 2009 19:28:51 +0000

ant banks, I agree that too many people hold bachelor’s degrees now. As a culture, we are becoming overeducated. (And at the same time, are we any more intelligent? That is debatable.) I graduated from UGA with many classmates who still are working “below” their education, or who had to pursue advanced degrees in something more specific. College savings accounts like 529s can be used for trade schools, as I understand it.