What type of savings account do you have for your kids?

[Deleted]

I only have a regular savings account for them now. But I need to split it and create one for each. I also need to probably do something other than just a plain ol' savings account. I have heard 503b in the past. Not really sure what to put the money in. 


I do not want to call a financial adviser because at this point we are talking like $100 a month. 

[CurlyQ284]

Right now I just have a 529 college fund. He doesn't have a savings account, I just throw all money gifts into that for now.

[gummybear]

They both have 529s and a regular old savings account at the bank.

[eb777888]

Just a typical savings account. I know it's bad but I also don't know what to do for his college fund. We have it direct deposited from H's check like our own savings account. We also do $100/month. I'm hoping to do more in 2015.

[thebreakfastclub]

We have a 529 for DS.   I thought this was helpful in researching options.

www.clarkhoward.com/news/clark-howard/education/clarks-529-plan-guide/nFZS/

[snipsnsnails]

They each have a mutual fund.

[popple]

Just a 529 for our 3 year old.

[iamgrace]

Just a regular one for each kid and a family RESP for both.

[isabel]

I was literally just looking at this last night. We're already putting aside quite a bit monthly for college, but it's just in a basic savings account. Our financial advisor passed away last year, so we are going to start looking for another one. The state of Colorado has several 529 plans, but I've also heard that it can be advantageous to go with another state's plan depending on the tax implications and what not. I have no idea what to do at this point.

[whitemerlot]

I finally opened a 529 for each kid this year. I also have a kids sub account in my savings for them.

[beefcheeks]

We have 529's for both. I'm thinking about getting a regular savings account for DS1 because he got some cash for Christmas and it's not enough to bother with the 529 but enough that I don't want it in his piggy bank. lol

[cville]

Um, a 529 and I spend money out of my own accounts for them. That's good enough for those goddamned whippersnappers.


ETA:  L also has this:

[Deleted]

Did you do your 529 through your credit union?

[Deleted]

I am really hoping to get a nice inheritance from my IL's for the kids college one day. Or maybe they will still be alive and they will pay for them.


Sigh. I won't get anything if MIL keeps those photo shoots with the insane photo shopping up. I am sure they are a pretty penny.

[isabel]

Dec 29, 2014 13:57:53 GMT -5 thebreakfastclub said:

We have a 529 for DS.   I thought this was helpful in researching options.

www.clarkhoward.com/news/clark-howard/education/clarks-529-plan-guide/nFZS/

This is helpful. Thank you!

[trafficgirl]

This is good timing as we're going to open savings accounts for the boys this week with the money they got for Christmas.

Unfortunately our state doesn't have a 529 plan so we'll have to do some research on what we want to do.

[stellas]

We have basic savings accounts right now. That's it. Dh wants to ramp them up with investments but it'll be something basic like a money market account, as he's laboring under the delusion that they'll be super geniuses and get full rides for college. He wants to be able to pay for college but not have money saved for college only.

[Deleted]

Ugh.

That site recommends not to save for college unless we are already maximizing our retirement.


We are not. LOL.


Yay. Off the hook. You are on your own kids!

[Deleted]

Dec 29, 2014 14:16:19 GMT -5 trafficgirl said:

This is good timing as we're going to open savings accounts for the boys this week with the money they got for Christmas.

Unfortunately our state doesn't have a 529 plan so we'll have to do some research on what we want to do.

Mine does not either is appears....

[whitemerlot]

I was very intimidated by opening the 529 plans. I read a lot about it, including the Clark Howard link. I don't have any tax benefit in my state and ended up going with the Utah Age Based Global Aggressive plan. It took me about 10 minutes to open.

[cville]

Like, I'm not trying to be an asshole, but why would really kids need non-college fund-related savings accounts (or checking accounts, for that matter)? They don't build credit or anything. I can see it as a useful teaching tool for money, and I know I had one in the 5th grade. But even then it was like the $10* I got from my grandmother, not any form of ACTUAL savings.

Even if my kids GET full rides for college (which, LOL LOL LOL. Even some the "top ten" colleges in terms of merit based aid give out awards to a mere 40% of the student population--and that's ANY award) a 529 can come in handy for other college-based expenses.


*updated to reflect non-inflation adjusted real numbers

[Deleted]

Dec 29, 2014 13:55:36 GMT -5 @tambcat said:

umm I don't have any.

The ILs have one for each girl, but I don't know what type.

We don't either. My parents have an account for her. I am pretty sure it is just a basic savings account.

[stellas]

Dec 29, 2014 14:27:30 GMT -5 cville said:

Like, I'm not trying to be an asshole, but why would really kids need non-college fund-related savings accounts (or checking accounts, for that matter)? They don't build credit or anything. I can see it as a useful teaching tool for money, and I know I had one in the 5th grade. But even then it was like the $10* I got from my grandmother, not any form of ACTUAL savings.

Even if my kids GET full rides for college (which, LOL LOL LOL. Even some the "top ten" colleges in terms of merit based aid give out awards to a mere 40% of the student population--and that's ANY award) a 529 can come in handy for other college-based expenses.


*updated to reflect non-inflation adjusted real numbers

Are you asking why anyone would save money for their kids if they weren't going to be using it for college?

I agree it's dumb to assume kids won't need college money. Mine will. Dh has just dug in his heels and wants "flexible" savings for them. I don't consider it worth the battle because we're planning on saving money for them that will grow, even if not optimally.

[Deleted]

Dec 29, 2014 14:27:30 GMT -5 cville said:

Like, I'm not trying to be an asshole, but why would really kids need non-college fund-related savings accounts (or checking accounts, for that matter)? They don't build credit or anything. I can see it as a useful teaching tool for money, and I know I had one in the 5th grade. But even then it was like the $10* I got from my grandmother, not any form of ACTUAL savings.

Even if my kids GET full rides for college (which, LOL LOL LOL. Even some the "top ten" colleges in terms of merit based aid give out awards to a mere 40% of the student population--and that's ANY award) a 529 can come in handy for other college-based expenses.


*updated to reflect non-inflation adjusted real numbers

I dunno. My aunt had pre paid for my cousins college and then she uses the savings account she always put $50 a month away in to pay for his rent/keep him afloat as a senior in college. 


They have a ton of money though. I don't think I would do that. LOL. 

[Deleted]

Just a 529.

[snipsnsnails]

Our thought with mutual funds are they are for future down-payments or a kick-start to their retirement, not necessarily education. Though we won't have the same tax benefits as the 529, it gives more flexibility and college will be cash-flowed by us with some direct-tuition payments made by grandma and grandpa, most likely.

[cville]

Dec 29, 2014 14:33:53 GMT -5 stellas said:

Dec 29, 2014 14:27:30 GMT -5 cville said:

Like, I'm not trying to be an asshole, but why would really kids need non-college fund-related savings accounts (or checking accounts, for that matter)? They don't build credit or anything. I can see it as a useful teaching tool for money, and I know I had one in the 5th grade. But even then it was like the $10* I got from my grandmother, not any form of ACTUAL savings.

Even if my kids GET full rides for college (which, LOL LOL LOL. Even some the "top ten" colleges in terms of merit based aid give out awards to a mere 40% of the student population--and that's ANY award) a 529 can come in handy for other college-based expenses.


*updated to reflect non-inflation adjusted real numbers

Are you asking why anyone would save money for their kids if they weren't going to be using it for college?

I agree it's dumb to assume kids won't need college money. Mine will. Dh has just dug in his heels and wants "flexible" savings for them. I don't consider it worth the battle because we're planning on saving money for them that will grow, if not optimally.

Dec 29, 2014 14:35:09 GMT -5 @lazerus24 said:

Dec 29, 2014 14:27:30 GMT -5 cville said:

Like, I'm not trying to be an asshole, but why would really kids need non-college fund-related savings accounts (or checking accounts, for that matter)? They don't build credit or anything. I can see it as a useful teaching tool for money, and I know I had one in the 5th grade. But even then it was like the $10* I got from my grandmother, not any form of ACTUAL savings.

Even if my kids GET full rides for college (which, LOL LOL LOL. Even some the "top ten" colleges in terms of merit based aid give out awards to a mere 40% of the student population--and that's ANY award) a 529 can come in handy for other college-based expenses.


*updated to reflect non-inflation adjusted real numbers

I dunno. My aunt had pre paid for my cousins college and then she uses the savings account she always put $50 a month away in to pay for his rent/keep him afloat as a senior in college. 


They have a ton of money though. I don't think I would do that. LOL. 

I guess I'm asking why anyone would make a "regular" savings account a priority in addition to a 529.  Until the kids are old enough to understand money in a more abstract way (I'm thinking 4th/5th grade, maybe older), cash in/cash out is probably the best way to teach about savings.  And the more money in the college account the better, imo.

In lieu of, well, I mean I guess I see the "flexibility" argument but even though I will accept and love my children regardless of whether or not they attend college, it's more and more a part of the typical and expected future course of life for most entry level positions.  And need based aid is something many people cannot qualify for, and merit based aid is scarce.  So, from my perspective, the savings they "need" are college savings.  The 529 is, imo, the simplest and most effective vehicle for that.  You all do you, so long as you don't ask ME for cash.  


I am like the Ron Popeil of savings, however.  I like to set it and forget it.

[missmaddie]

Dec 29, 2014 14:03:40 GMT -5 iamgrace said:

Just a regular one for each kid and a family RESP for both.

Same. Well, just DS for now, but the future kid will have one too, and we decided to make it a family/joint RESP in case we did have another child.

Little gifts like $30 "Happy Halloween!" cheques from Great Aunt Edna go into the savings account. Too difficult to put those little ones into RESP every few months.

Right now $100 is direct deposited each month into the RESP, plus a bigger lump sum when we opened after in his 1st birthday. I don't really miss the $100 since the Universal Child Care Subsidy amount is the same each month.

[pagas]

Nothing!

[cville]

Dec 29, 2014 14:44:29 GMT -5 @kirkette said:

cville Part teaching tool, as we expect them to continue to contribute to it as they age. Another part is for other life expenses they may encounter like cars, weddings, safety net as they are paying their dues at their first jobs, house down payment, etc. 

We both still have our childhood accounts.

I do too!  Mine was with the small local bank that merged and merged again and is now a gigantic conglomerate.  I have these weird terms that they're all like "how did you get that?"

I was thinking more about large sums of cash going into THAT savings v. college savings, and when kids are really little and can't get it.  Like, my 5 year old gets "saving" in her Superman bank, and we talk about regular banking (she's enamored of the safety deposit box room), but I don't think she'd get savings-account savings YET.  

This is just my personal opinion here.  I am bored at work waiting on a call.