College Savings....

[VA49er]

So, what's the best way to go? 529? Coverdale? Prepaid Tuition Plan? Lottery? I got a kid and I need to start saving.

[Southern_Yankee]

an inheritance worked for me :woohoo:

[meatpile]

I mulled all the options and decided this:

I don't want a 529. The reason that I don't want a 529 is because the 529 belongs to the child. The child has to spend the $$ on tuition, room, and board.

I had several friends who had trusts that they had to spend on tuition, room, and board. They took pottery, PE, and some other shit, did bong hits all day and got C-. And they got paid. My kid could do that with a 529 and there'd be nothing I could do to stop it - the money is legally theirs.

Also - college is very expensive. I have 3 kids - I figure the cost will be between $250k and $500k.

I decided that I will invest the money in my name as if it will be needed in 12-17 years. The investments will be lower risk than my retirement. Since the $$ amount is so high, I wanted to be able to use it for family expenses if necessary over the 12-17 years that I'm responsible for the financial well being of everyone. College is important, but a driven kid can pay for that without my help if they had to. They cannot pay the mortgage when they are 10. And if I need that ( hope I won't ) I prefer having it.

I also plan on taking out student loans and offering this incentive: get a 3.0 and I pay it off. Get less than a 3.0 and you're paying it.

Anyway. Lots of ways to do it, that's what I'm currently planning on.

[VA49er]

I mulled all the options and decided this:

I don't want a 529. The reason that I don't want a 529 is because the 529 belongs to the child. The child has to spend the $$ on tuition, room, and board.

I had several friends who had trusts that they had to spend on tuition, room, and board. They took pottery, PE, and some other shit, did bong hits all day and got C-. And they got paid. My kid could do that with a 529 and there'd be nothing I could do to stop it - the money is legally theirs.

Also - college is very expensive. I have 3 kids - I figure the cost will be between $250k and $500k.

I decided that I will invest the money in my name as if it will be needed in 12-17 years. The investments will be lower risk than my retirement. Since the $$ amount is so high, I wanted to be able to use it for family expenses if necessary over the 12-17 years that I'm responsible for the financial well being of everyone. College is important, but a driven kid can pay for that without my help if they had to. They cannot pay the mortgage when they are 10. And if I need that ( hope I won't ) I prefer having it.

I also plan on taking out student loans and offering this incentive: get a 3.0 and I pay it off. Get less than a 3.0 and you're paying it.

Anyway. Lots of ways to do it, that's what I'm currently planning on.


Thanks for the info. I'm not about to forfeit retirement savings for college savings, but I do want to do something to help my child afford college.

I have a savings account I'm not gonna tell my daughter about. I put it in my name as that has something to do with financial aid in the future. I plan to start another one for her that she knows about when she gets old enough for an allowance. I'll give her whatever amount each week, and if she agrees to keep it in the account, I'll double it, if she takes it out, she only gets the original amount. Hopefully, that'll teach her to save money.

[Bootay]

I also plan on taking out student loans and offering this incentive: get a 3.0 and I pay it off. Get less than a 3.0 and you're paying it.


That's my plan. I've got cash set aside, but I'll pay off their loans only if they finish on-time and with a good GPA. Working through college brings a LOT of benefits, being funded all the way through brings nothing positive.