What do you do with gift money?

[Deleted]

This always throws me. If it's under $20 I usually stick it in their savings account, if it's $20 or over (or the gift giver specifies "College Fund") I deposit in their 529.

We also split all can deposit money we get back between the kids for their piggy banks. Should we stop doing this and put it in their 529s instead?

Should I be putting it all in their 529s since they are so little and have everything they need plus a gazillion toys?

How did you decide where to put gift money? I am so confused.

[Deleted]

everything goes into the 529.

[madringal]

Ditto Cosmos - I put everything they get into their 529's.

[Deleted]

May 16, 2012 17:17:34 GMT -5 madringal said:

Ditto Cosmos - I put everything they get into their 529's.

Ok. I'm going to move it out of their savings to their 529s and not feel bad. I don't know why I felt guilty in the first place.

[Deleted]

So far, DS has received savings bonds or GCs or actual gifts. Once he receives actual cash, we'll put it in a 529 or an investment account.

[vanillacourage]

For expediency we just put checks and large bills in our account and remember to increase that month's college contribution by the same amount. Small bills go into his piggy bank to save for splurges of his choice.

He has latched onto the piggy bank concept. DH always used to have a pile of change on his bedside table from emptying his pockets each night. No more! Every couple mornings DS sneeeeaks up and squirrels it all away.

[Ashley&Scott]

Savings account for now but we haven't started his 529 yet. When we open his 529 we'll move money over from savings.

[Deleted]

The yearly gift from the ILs goes to the 529. Any other gift goes to a savings account right now which I plan to move to an investment account after I find time to figure out where to open it. I tried TDAmeritrade but it doesn't seem like they have any custodial account.

[ilikedonuts]

I think we're going to keep a separate savings/investment account for her with all the money she gets and then put money monthly into a 529 for her (I need to start one and catch up for all the months we missed).

[aspentosh]

May 16, 2012 17:11:23 GMT -5 @iheartcosmos said:

everything goes into the 529.

Yup!