s/o SL: Parents, what, if anything, are you putting aside

[peachdragon]

We opened an account with 5k when our daughter was born. Each year we try to put in 2k. This might go down if we can adopt another child.

[iamgrace]

Nov 8, 2013 12:05:39 GMT -5 Que? said:

Nov 8, 2013 9:58:18 GMT -5 papie said:

That's a great idea!

I'm going to the bank and arranging this today. My answer was nothing, because I just haven't done it. My Mom will pay into it like she does for my niece and nephew so it's dumb of me to put this off.

How long do we get that $100? Til the start school?

I'm pretty sure we get until age 6.

[cc]

Not as much as I'd like given we don't have a ton left over each month after paying for dance lessons and daycare.

I do work at a university and the kids can go there for free. Hopefully, they don't change this benefit in the next 5 years (My oldest is 13) and I still have a job there. We also do a tuition exchange if DD wants to go to a different university, but availability is limited and based on seniority. By the time DD#1 graduates from high school, I will have been there for 18 years, so that should up my chances of getting it.

[janetplanet20]

I voted nothing, but that's bc my parents are planning to pay for my kid's college. If we were paying we'd be investing in the market, though I'm not sure how much money we'd put in each year.

[Deleted]

Nov 8, 2013 9:57:18 GMT -5 ax2 said:

Nov 8, 2013 9:50:24 GMT -5 papie said:

There is a government program where they put something in for every amount you put, and the max contribution is $2500 a year. So we do that. Full disclosure: FIL has made all the contributions so far but we would if he wasn't.

We're using this program too. We deposit our $100 Universal childcare benefit (baby bonus?) check into it every month so we don't miss it.

We do this as well

[gustafngrete]

Nov 8, 2013 9:51:09 GMT -5 Lucy Honeychurch said:

We contribute randomly to 529s. Every year my mother puts in a few thousand as well.

ETA:  Right now KHC's 529 balance is about $23,000.  He's 8 now, so it probably averages out to about $3,000 a year or $250/month.

Our situation is very similar.  Our 8 year old has around $25k in his.  My parents contribute periodically to both accounts.  DS2 (who is six) has a lot less in his, though.  We keep saying that we are going to throw a big chuck of money into his account... but then we need a new roof, new car... LOL it's always something!  

[speckledfrog]

We are maxing out contributions for the 529. Both of our parents paid completely for our college education and, since we are in a position where we can, we really want to do the same for our kids. MH is really gunning for me to go back to work as soon as the second hits grade school so we have a little more wiggle room in the budget.

[thecatdidit]

$450/month

[eb777888]

$50/month for now. These days....we po'.

[missmaddie]

Nov 8, 2013 9:58:18 GMT -5 papie said:

Nov 8, 2013 9:57:18 GMT -5 ax2 said:

We're using this program too. We deposit our $100 Universal childcare benefit (baby bonus?) check into it every month so we don't miss it.

That's a great idea!

We do the exact thing!

[themoneytree]

We put in $20,000 lump sum when we had our daughter. We've added another $10,000 over the past 16 months.
It feels like there is still so far to go and it's scary thinking of shouldering the cost for college in this country. : (

[Deleted]

We don't have kids yet but there is money sitting in stocks in a trust that we will roll over into a 529 as soon as each child is born. It is money we then won't have for ourselves, but the tax advantages are such that there is really no better way for us to take the money. Rolling it into a 529 should avoid capital gains altogether.

ETA: I feel like there are people in here who are not doing good tax planning because I know they have bunches of money and are missing a great opportunity to let investments grow tax free, and to take inheritances without tax. I don't know the intricicies and don't give tax advice, but talk to your accountants!

[jenna]

Nov 8, 2013 10:31:14 GMT -5 @kirkette said:

Nothing.
ILs have graciously offered to cover the cost of higher ed for our kids, just like they did for Mr.Kirkette and his siblings.
We save a little bit each month for other purposes (her first car, wedding, etc.).

This.

Both sets of grandparents have college accounts for the grandkids.  Assuming nothing changes, FIL will pay tuition costs, and my mom will help with any other fees/costs.

I have a savings account for E that I'm hoping to stash away $1k annually.  Hopefully this will provide E some assistance with something like a house down payment or a similar expense.

[CloudBee]

We're not setting anything specific aside for college. We opened a savings account for cash gifts. No clue what he'll use that money for, but we'll come up with some type of system where he saves a certain amount or percentage of cash gifts once he's old enough to have an interest in spending. He's also received some stock as gifts upon birth. Maybe we'll have him use some of this $ to go towards books each semester?

Anyway, back to college savings. Nothing is earmarked. We actively invest, so we'll cash in investments or use the cash flow from dividends or similar when the time comes. None of our assets are flagged for any specific use, really.

[penelope]

I don't feel obligated to pay for my kids education in full, especially after watching the students I work with spending mom & dad's money w/ no thought. I will help them live, but they can work and help
pay for their own tuition. Maybe then they won't drop paid-for classes willy nilly and rack up 1000's in parking tickets, because we are paying them. Students do that stuff all the time w/o a thought.

[nsl]

We certainly won't be paying for everything, but put away around $200/month per kid in an education account that will at least significantly defray the costs of college. My parents did the same thing and I am more thankful every year that between the money they gave me and my merit-based scholarships I never had to take out student loans. H, on the other hand, joined the Army because his mom wasn't able to save anything for him and he didn't want to be paying back $$$ for undergrad and medical school. It wasn't a bad decision on his part, but as a result the Army will basically own us until DS 1 is in middle school.  If my sons decide to follow their dad and join the military I want it to be because they feel a strong desire to serve their country, not because they can't afford to pay for school.