529 accounts - for fun

[coffee]

Just out of curiosity, 

If you do have a 529 account for your children:

1) How many accounts do you have?
A- 3

2) How many children do you have and what are their ages?
A- 3 children 6, 4 and 2 years old.

3) How much do you contribute monthly (or how often?)?
A- $200 monthly for each. And then $2K or $3K to each account yearly when we get the bonus.

4) When did you started contributing?
A- Since each child was born

5) What were your goals regarding 529 when you opened the account?
A- Pay all their college expenses.

6) Are you on track? Or What are your goals now down the road?
A- Not sure depending on university costs in the future, and selection.  
Minimum goal is to offer them a full ride at at local university, so they can live at home and not having to get student loans. 
Dream goal is paying all their expenses at the university of their choice.

7) Extra info
Kids do not know about these accounts. And we don't plan on telling them. We want them to work hard to get scholarships and students loans. Then pay them off once they graduate... or maybe even wait a year after graduation so they can know what paying off debt means. We'll see. 

DH and I were extremely fortunate that our parents paid all college expenses. I did have student loans but when I got married my dad told me they were going to take care of it as my wedding present (instead of paying for our wedding). I thought that was very smart. DH and I paid for our wedding, but started our married life with no debt at all. I believe that set us up for a good start financially =) 

[Covergirl82]

1) How many accounts do you have?
A- 2 (one for each child)

2) How many children do you have and what are their ages?
A- 2 children: almost 11 years old and 9 years old

3) How much do you contribute monthly (or how often?)?
A- $90/month each, and usually contribute $500 each when DH receives his annual bonus. After we (hopefully) get merit increases next spring (2021), I'd like to increase the monthly contributions to $100 or $110 per month. (We are working on paying down debt so that we can be debt free by the time our oldest graduates high school, so debt reduction has been our focus.)

4) When did you started contributing?
A- We opened the accounts when each child was around 3 months old. We have increased contributions over time (I think we started at around $50/month).

5) What were your goals regarding 529 when you opened the account?
A- Pay half of college expenses.

6) Are you on track? Or What are your goals now down the road?
A- Not sure as it depends what type of college or university (or even trade school) they go to, and if they receive any scholarships.

7) Extra info
Kids do know we've set up an account for each of them, and that we expect them to pay for some of their college.

DH and I differ on opinions on paying for college for our kids. DH paid all his college expenses (and we're still paying on his SLs (we've been married almost 14 years)), but my parents paid 95% of my college (plus I had a few small scholarships). I had a $5,000 SL coming out of college, but I was able to pay it off in two years between tax refunds and work bonuses. I don't feel that I took advantage of my situation (having college paid for), but DH and I would like our kids to have some "skin in the game" so that they take finances into account when choosing a college/university and also as an incentive to stay engaged and focused on getting good grades. I'd like us to pay for at least 50% of college expenses, maybe more if we are in a great place financially (i.e., very little or no debt) when they start college.

[njohnson1972]

1) How many accounts do you have?
A- 2

2) How many children do you have and what are their ages?
A- 2 children 8 and 6 years old.

3) How much do you contribute monthly (or how often?)?
A- none

4) When did you started contributing?
A- since they were born

5) What were your goals regarding 529 when you opened the account?
A- all of the money in their 529 plans are gifts of money we have received over the years. All cash gifts were put into their 529 plans. We also have state university tuition pre-paid for both children. The 529 funds will be able to help with extra costs of education or if they decide to go to a school out of state, private school, or graduate school.

6) Are you on track? Or What are your goals now down the road?
A- We are on track. At a minimum, they have 4 years at the state universities paid for each of them.

7) Extra info
We are in the middle of getting divorced and I am glad we did the prepaid tuition programs. Again, at a minimum, they can get a good state university education. I won't have to fight with my ex over paying for college down the road. I hope that I am financially successful enough to help them out more, if they are driven to do more. I finished school with $28,000 in student loans.

[trissie18]

1) How many accounts do you have?

A- 2


2) How many children do you have and what are their ages?

A- 2 children - 10 and almost 12



3) How much do you contribute monthly (or how often?)?

A- right now nothing. We used to put in $50 per month per account. Hope to start contributing again next year.


4) When did you started contributing?

A- Since each child was born



5) What were your goals regarding 529 when you opened the account?

A- Pay college expenses.



6) Are you on track? Or What are your goals now down the road?

A- We don't really have a specific goal other than to help however we can.


7) Extra info

The accounts are in my mother's name so they don't get included in any financial aid or scholarship calculations. The plan is to use the amount to pay down their student loan debt once they graduate or to cover any gaps that would require parent loans. Our parents helped us as much as they could but having some skin in the game certainly made us more accountable so we plan to do the same for our children. However, if we are in a great financial place when the time comes then things could change.

[farmvillelover]

May 28, 2020 9:05:26 GMT -5 coffee said:

Just out of curiosity, 

If you do have a 529 account for your children:

1) How many accounts do you have?
2

2) How many children do you have and what are their ages?
4 and 8 years old

3) How much do you contribute monthly (or how often?)?
We don't contribute anymore but used to put $ in piecemeal as we were able.

4) When did you started contributing?
Since/before birth.

5) What were your goals regarding 529 when you opened the account?
Pay all their college expenses.

6) Are you on track? Or What are your goals now down the road?
On track. If not, we'll hopefully cashflow whatever isn't covered by 529 or tuition waivers.

7) Extra info
We don't contribute to 529s anymore, instead we put $ into 2 separate taxable brokerage accounts that are earmarked for them.  We'll give it to them if and when they are mature enough to handle it.

[noodleoo]

I'll play although we haven't been as good as you guys

1) How many accounts do you have?
A- 1

2) How many children do you have and what are their ages?
A- 2, 5 and 1.5 years old

3) How much do you contribute monthly (or how often?)?
A- Nothing monthly.  We've put in a couple K so far.  I'm afraid to look at the balance since a lot has probalby been wiped out. 

4) When did you started contributing?
A- Started it for DD1 when she was around 2.  Still need to start one for DD2.  

5) What were your goals regarding 529 when you opened the account?
A- Pay some of their college?  I don't know.

6) Are you on track? Or What are your goals now down the road?
A- Nope.  Way behind on starting one for DD2.  I've been waiting for DD1 to start K so that we drop to 1 daycare payment.  Once that happens I was planning to start small monthly contributions (maybe $50 each per month).

Questions:  So 529's kind of scare me because I feel like the money is locked in to paying for college, so I don't want to put too much in them.  H and I both had full academic scholarships that paid for most of our college.  I know it is foolish to think that will happen for our kids, but since we didn't have a lot of loans I get anxiety about locking the money into one place.  What if they decide not to go to college or the college bubble bursts and it is more affordable?  H's parents have also mentioned they plan to help with college for the grandkids, but we have no details on how or how much.  Any thoughts?

Note in general I'm terrible at investing, so if I'm being dumb about this, please help me. 

[sandandsea]

1. 2 accounts (1 per child)
2. 2 kids. Ages 8 & almost 4
3. $5k/kid/year - it started with the daycare flex spending account reimbursement
4. Started at birth
5. Goal is to pay for tuition and room/board - not extras
6. I think we are on track unless some huge economic issue happens at the wrong time
7. Dh and I paid for all of our own college and worked our butts off. It was hard but worth it and helped build grit. It also made us accountable for our spending and grades and I want our kids to feel that same commitment and have the same growth so we will likely require some kind of GPA/part time job/budgeting/etc. Not sure how all of that will work yet since we aren’t even close but interested to know what works well.
ETA. We also plan to have the mortgage paid off before ds1 gets to college so we could cash flow any excess as needed.

[Poppy]

1) How many accounts do you have?
A- 2

2) How many children do you have and what are their ages?
A- 2 children, 5 and 2 years old.

3) How much do you contribute monthly (or how often?)?
A- Put ~30k in each when we opened them. My grandma has contributed a few thousand more.

4) When did you started contributing?
A- Since each child was born

5) What were your goals regarding 529 when you opened the account?
A- H and I have differing opinions on this. Assuming the kids seem to be making wise choices, I would like to pay all college expenses. H feels that the kids need to have more skin in the game.

6) Are you on track? Or What are your goals now down the road?
A- Doubtful but hopefully can cash flow further help or pull from other investments as needed.  
As mentioned above, if the kids are making good choices I'd like to pay everything. If they want to study something absurd or go to an expensive college that we feel is a poor value then I am not inclined to write them a blank check.

7) Extra info
My kids are still young so for now all we do is promote college in general. When they are closer to going, I plan to have frank discussions with them about the trade-offs for different options. My dad gave me a spreadsheet showing each deposit into my college account. That showed me how they planned for it and prioritized it and that my grandparents also valued it (since they made deposits too). That had a lasting impact on me.

[sandandsea]

One tip for the above is that there is no penalty to removed the money from a 529 for the amount of a scholarship received. So if they do get a full ride then you can take the money out, pay tax on the gain, and it’s no loss.

[dr.girlfriend]

IDK If this counts, but I'll answer for the account my father (DS's grandfather) set up for him

1) How many accounts do you have?
1

2) How many children do you have and what are their ages?
1 child, age 11

3) How much do you contribute monthly (or how often?)?
My parents threw money in the account intermittently, probably about 5-8k a year given its current balance

4) When did you started contributing?
They started when the kid was born. DH and I decided to prioritize our Roth and retirement accounts while we were eligible, thinking we could always use the Roths for DS's college expenses but wouldn't be able to go back and fund our Roths

5) What were your goals regarding 529 when you opened the account?
Pay at least a good chunk of college costs

6) Are you on track? Or What are your goals now down the road?
So, here's where it's a little complicated. I did a lot of extra work to get a faculty appointment at the (Ivy League) university affiliated with my medical center. Assuming all goes well and I stay, which I plan to, DS will get a full tuition waiver at that university or something like 60% of that university's tuition anywhere else, which would probably cover full tuition at most places. We also refinanced our mortgage to a 15-year and are paying extra, and are therefore on track to have the mortgage paid off by the time DS is in college. So, our plan would be to combine his 529, the $2k/month we previously paid toward mortgage, and any other scholarships etc. to hopefully pay in full for his tuition plus room/board/expenses. My parents gave me and my sister the gift of student-loan-free adulthood, and I'd like to do the same for our son. We've been doing a few other things with up-front expenses (e.g. solar on our roof, renovating our house so we can age-in-place) to potentially reduce future expenses as well.

7) Extra info
lol, I should have read ahead, I think I put all the extra info above. The only other big piece is that, as much as I don't like to think this way, we may very likely inherit a substantial amount when my remaining parent (my mother) passes, which makes all these financial issues somewhat moot. Or even more morbidly, something could happen to me (not unlikely given my family history) and my $1 million life insurance kicks in. But, I would never really factor in any inheritances when planning. With luck my mom will live to see my son graduate from college, but she would be in her early 90's at that point. The other issue is that my dad became increasingly erratic in the past few years, from a combination of alcoholism, bipolar, and possibly dementia. He passed away last month, but up until then I've been trying not to really factor this 529 in, since there was no telling what he would do if he developed a grudge against us as he was prone to do -- I could easily see him just withdrawing it all and paying the penalties or whatever in a manic episode.

[imojoebunny]

1) How many accounts do you have?
4

2) How many children do you have and what are their ages?
Two, 11 and 13.

3) How much do you contribute monthly (or how often?)?
Once a year, whatever the max is

4) When did you started contributing?
A- Since each child was born

5) What were your goals regarding 529 when you opened the account?
Pay all their college expenses.

6) Are you on track? Or What are your goals now down the road?
It depends. College cost are flexible, based on my college niece and 3 nephews experience. One pays nothing, but transportation to go to a highly regarded out of state school, other two pay somewhere in between rack rate and nothing. 4th is going next year, maybe with covid? He has many scholarship offers for academics (he is an exceptional student in Math and Science, not an ordinary gifted kid). We should be able to pay in full, if they go to a state school, everything included, at rack rates, but if they chose an expensive private school or out of state, who knows?

7) I am not interest in my kids going to the best college they can get into. I am interested in them going to the best place for them, and with the best ROI for their chosen degree. I don't know what our income will be when they start college. My DH is planning to retire soon. I don't work. Right now, our income is such, we would likely have to pay rack rate for my DD at most places, and get no grants that are not available to everyone. My son is an exceptional student, like 11th grade reading level at the beginning of 5th grade, 99% on most every standardized test, and I think it is likely he could get paid to play, as 2 of my nephews do, but who knows. DS is 11. He might do something stupid or stop giving a shit.

[Susie]

I have a 529 for each kid, ages 4 and almost 1.  They've had them since they were infants, and we put $50/kid/month.  It isn't much, but we're still paying for double daycare tuition + double law school loans (H's and mine) + trying to catch up on retirement.  Anything is better than nothing.  I don't have a specific goal yet, I plan to revisit our contributions and future plans in a few years.

[simpsongal]

May 28, 2020 9:05:26 GMT -5 coffee said:

1) How many accounts do you have?
A- 2

2) How many children do you have and what are their ages?
A- 2 kids, 3 and 6 yrs old

3) How much do you contribute monthly (or how often?)?
A- We put $4K per yr in each account. (that's the max for state tax deduction)

4) When did you started contributing?
A- When DS was born and when I was pregnant w/DD (we're a yr ahead on hers)

5) What were your goals regarding 529 when you opened the account?
A- Take advantage of tax benefits and compounding interest

6) Are you on track? Or What are your goals now down the road?
A- Yup, we'll keep giving the same amount.  In laws said they would help with college if needed and we have dividend-paying stocks we're hoping will be helpful for extra cash flow when they're college-aged (as well as extra income that will no longer go to daycare and SLs).

7) Extra info
DH had college, law school, and grad school paid for by his parents/grandparents, which was a huge life changer for him/us.  We've witnessed other folks who got the same courtesy not picking a thrifty college or lifestyle, so we'd like to avoid that.  It's not a blank check and we're hoping our resources and perhaps extended family will be able to help pay for 4-year college and grad school.  It really depends on the kid and the exact circumstances. 

[scm1011]

1) How many accounts do you have?
A- 2



2) How many children do you have and what are their ages?
A- 2 kids, 3 and 1 year old


3) How much do you contribute monthly (or how often?)?
A- We put in $100/mo each plus any monetary gifts


4) When did you started contributing?
A- birth


5) What were your goals regarding 529 when you opened the account?
A- Take advantage of tax benefits and compounding interest



6) Are you on track? Or What are your goals now down the road?
A- Our goal is to help however we can, but I doubt we'll be able to pay their full tuition like my father did for me. I'm more concerned with our retirement savings. It is what it is.


7) Extra info
I expect my dad will leave a decent size inheritance for the kids and that will be put towards college. 

[brooke77]

1) How many accounts do you have?
1

2) How many children do you have and what are their ages?
1 child, almost 3 years old

3) How much do you contribute monthly (or how often?)?
Usually once a year, $5K. But we also contribute when we receive any cash gifts for him (birthday/Christmas).

4) When did you started contributing?
Probably about 6 months after he was born.

5) What were your goals regarding 529 when you opened the account?
Help pay for college.

6) Are you on track? Or What are your goals now down the road?
Yes? I would really like to be in a position where he doesn’t have to take out student loans. But it’s so hard to balance that with all my other financial goals (retirement, my own SLs, etc).

7) Extra info
My DH had college and grad school completely paid for by his family. I had zero help from my family and have huge SLs which I am still paying off. I will hopefully be done in 5 years. SLs have been a huge financial burden for me and affected so many decisions in my life, so I want my son to have more financial freedom. Undergrad wasn’t so bad since I had scholarships but law school loans are crushing. I hope to be able to save to help pay for my sons education which I expect would include some sort of graduate school as well. In a few years we won’t have daycare OR my student loan payments and I expect that we will put a lot more in savings.

[numbers]

1. 2 accounts
2. 2 kids (ages 5 and 3)
3. $500 per kid per month since birth.
4. Contributing since birth.
5. Goal is to pay all college expenses.
6. According to our FA's analysis, we are on track.
7. We both had all college expenses covered by our parents, and we plan to do the same.

[jwright]

May 28, 2020 17:52:28 GMT -5 sandandsea said:

One tip for the above is that there is no penalty to removed the money from a 529 for the amount of a scholarship received. So if they do get a full ride then you can take the money out, pay tax on the gain, and it’s no loss.

That's one of the loopholes I've seen exploited.  Since our state offers a tax deduction for making the contribution, you can make a contribution on Dec31 and get the deduction for that year.  Then pull it right back out on Jan 1.  With no gains accumulated there is no tax. 

[whitemerlot]

1) How many accounts do you have?
A- 2

2) How many children do you have and what are their ages?
A- 10 and 8

3) How much do you contribute monthly (or how often?)?
A-We are putting in $500 a month per kid. We were less consistent in the past but for about a year have been adding monthly.

4) When did you started contributing?
A- ages 1 and 3

5) What were your goals regarding 529 when you opened the account?
A- Pay all their college expenses.

6) Are you on track? Or What are your goals now down the road?
A- Hard to tell. We are using the Utah 529 age based aggressive global plan.

7) Extra info
My parents and my h’s did not help at all with college and I really want to help my kids.

[badgergrl]

]1) How many accounts do you have?
2

2) How many children do you have and what are their ages?

2 kids, 6 and 10

3) How much do you contribute monthly (or how often?)

$250 per month per kid. Plus random small gifts from other family members

]4) When did you started contributing?
First kid account was opened by 1. Second kid I opened after I got pregnant so I could make a donation for 2013. He was born in 2014.

5) What were your goals regarding 529 when you opened the account?
Pay the vast majority of their undergraduate costs.

]6) Are you on track? Or What are your goals now down the road?

No idea. We hope to have our student loans paid off by the time the kids go to school. Hopefully we will follow the plan that anything we can save for we will cash flow.

[mae0111]

1) How many accounts do you have?
A- 2



2) How many children do you have and what are their ages?
A- 2 kids, 10 and 7 years old


3) How much do you contribute monthly (or how often?)?
A- $5k per year per kid, plus small extras explained below.


4) When did you started contributing?
A- birth


5) What were your goals regarding 529 when you opened the account?
A- We want to pay for a good chunk of college, but not all. We want the kids to have some skin in the game. DH and I came out owing about what we made in a year. We think that’s fair (or owing slightly less).



6) Are you on track? Or What are your goals now down the road?
A- I think we are off track given the stock market nose dive, but I’ve been afraid to look. The goal remains the same - cover most, but not all. We want them to work in college, worry about loans enough so that they get jobs when they get out. So many of my friends just floated around after college because their parents supported them financially. My kids have those qualities- the would just hang out as long as money wasn’t an issue. So we kind of feel like we need to make it one.


7) Extra info
In addition to the $5k lump sum, DH has a credit card that adds 2% of all purchases right into the 529s. He uses it for business expenses, and he travels a ton. I think that card added an extra $500 each last year. Not a ton, but hopefully it will grow. This year’s extra contribution will be smaller, obviously, with no travel.

[lemoncupcake]

May 28, 2020 9:05:26 GMT -5 coffee said:

Kids do not know about these accounts. And we don't plan on telling them. We want them to work hard to get scholarships and students loans. Then pay them off once they graduate... or maybe even wait a year after graduation so they can know what paying off debt means. We'll see. 

They’ll definitely see the 529 if they ever look at FAFSA paperwork.

And how would it work from a tax perspective if you’re essentially pulling out funds to your kid rather than paying directly to an educational institution? Would that trigger all the same penalties as pulling out the cash for any other purpose?

[coffee]

May 31, 2020 10:46:55 GMT -5 lemoncupcake said:

May 28, 2020 9:05:26 GMT -5 coffee said:

Kids do not know about these accounts. And we don't plan on telling them. We want them to work hard to get scholarships and students loans. Then pay them off once they graduate... or maybe even wait a year after graduation so they can know what paying off debt means. We'll see. 

They’ll definitely see the 529 if they ever look at FAFSA paperwork.

And how would it work from a tax perspective if you’re essentially pulling out funds to your kid rather than paying directly to an educational institution? Would that trigger all the same penalties as pulling out the cash for any other purpose?

I didn’t know that they would know once they apply for FAFSA! I’ll check on my options for that. Thank you! TBH we will take decisions
as our kids grow and we know them better. If they are hard workers and doing well, we don’t mind telling them about the accounts and supporting them in advance. But if they start taking things for granted and fooling around, I would prefer for them not to know. I hope to do our parenting job well so our kids value hard work.

Regarding the Tax question, my understanding is that you can pay students loans with 529. I’m wondering if it would be better to save 529 under my name( or hisband’s or mom’s) as mentioned before, so it doesn’t create conflict when applying for scholarships. I never thought of that!!!!

[lemoncupcake]

May 31, 2020 19:32:28 GMT -5 coffee said:

May 31, 2020 10:46:55 GMT -5 lemoncupcake said:

They’ll definitely see the 529 if they ever look at FAFSA paperwork.

And how would it work from a tax perspective if you’re essentially pulling out funds to your kid rather than paying directly to an educational institution? Would that trigger all the same penalties as pulling out the cash for any other purpose?

I didn’t know that they would know once they apply for FAFSA! I’ll check on my options for that. Thank you! TBH we will take decisions
as our kids grow and we know them better. If they are hard workers and doing well, we don’t mind telling them about the accounts and supporting them in advance. But if they start taking things for granted and fooling around, I would prefer for them not to know. I hope to do our parenting job well so our kids value hard work.

Regarding the Tax question, my understanding is that you can pay students loans with 529. I’m wondering if it would be better to save 529 under my name( or hisband’s or mom’s) as mentioned before, so it doesn’t create conflict when applying for scholarships. I never thought of that!!!!

Putting a 529 in grandmas name to give your kid a scholarship rather than someone whose parents weren’t able to save for college is gross.

Take advantage of what is available but don’t game the system.

[coffee]

May 31, 2020 19:54:17 GMT -5 lemoncupcake said:

May 31, 2020 19:32:28 GMT -5 coffee said:

I didn’t know that they would know once they apply for FAFSA! I’ll check on my options for that. Thank you! TBH we will take decisions
as our kids grow and we know them better. If they are hard workers and doing well, we don’t mind telling them about the accounts and supporting them in advance. But if they start taking things for granted and fooling around, I would prefer for them not to know. I hope to do our parenting job well so our kids value hard work.

Regarding the Tax question, my understanding is that you can pay students loans with 529. I’m wondering if it would be better to save 529 under my name( or hisband’s or mom’s) as mentioned before, so it doesn’t create conflict when applying for scholarships. I never thought of that!!!!

Putting a 529 in grandmas name to give your kid a scholarship rather than someone whose parents weren’t able to save for college is gross.

Take advantage of what is available but don’t game the system.

My purpose would never be to play the system. I’m learning and wondering what is best to do as I read this thread.
I went to college in another country. Not originally from the US. My understanding for a scholarship base on my country is that you earn a scholarship base on merits and academic achievement, not because of financial needs. Financial aid scholarships are a whole different thing (in my native country), that I would never apply for if I saved for my kid’s college. That wouldn’t be right.
But, I would not want my kids to lose an ACADEMIC scholarship because we saved for their college.
Not sure how scholarships work here, and I will definitively do my research after this thread so we can do the best and right thing for us

The idea of putting 529 on my name or Grandmas’s sounded good to me also from your comment, thAt the kids would know about their 529 when applying for FAFSA.
I would definitely don’t want my children to know about those accounts if they don’t appreciate hard work, and deserve them.
There are so many unknowns now since kids are little. Just trying to see the big picture with all the possible options
But will never try to fool around the system!. That’s for sure

[lemoncupcake]

May 31, 2020 20:36:33 GMT -5 coffee said:

May 31, 2020 19:54:17 GMT -5 lemoncupcake said:

Putting a 529 in grandmas name to give your kid a scholarship rather than someone whose parents weren’t able to save for college is gross.

Take advantage of what is available but don’t game the system.

My purpose would never be to play the system. I’m learning and wondering what is best to do as I read this thread.
I went to college in another country. Not originally from the US. My understanding for a scholarship base on my country is that you earn a scholarship base on merits and academic achievement, not because of financial needs. Financial aid scholarships are a whole different thing (in my native country), that I would never apply for if I saved for my kid’s college. That wouldn’t be right.
But, I would not want my kids to lose an ACADEMIC scholarship because we saved for their college.
Not sure how scholarships work here, and I will definitively do my research after this thread so we can do the best and right thing for us

The idea of putting 529 on my name or Grandmas’s sounded good to me also from your comment, thAt the kids would know about their 529 when applying for FAFSA.
I would definitely don’t want my children to know about those accounts if they don’t appreciate hard work, and deserve them.
There are so many unknowns now since kids are little. Just trying to see the big picture with all the possible options
But will never try to fool around the system!. That’s for sure

There will be both - merit based scholarships and need based aid. If there’s such a big risk of you not wanting to give the kids the money, just put it in your own name in a brokerage account.

[imimahoney]

May 28, 2020 9:05:26 GMT -5 coffee said:

Just out of curiosity, 

If you do have a 529 account for your children:

1) How many accounts do you have?
A- 2

2) How many children do you have and what are their ages?
A- 2 children 8 abd 5 years old.

3) How much do you contribute monthly (or how often?)?
A- $150 monthly for each. And then additional money at the end of the yr but that changes from yr to yr.

4) When did you started contributing?
A- 3 yrs ago

5) What were your goals regarding 529 when you opened the account?
A- Provide what we can for their post-hs education.

6) Are you on track? Or What are your goals now down the road?
A- Not sure. We do not expectto be able to pay in full but will help where we can.7) Extra info
I grew up incredibly poor but had money saved for me from my mother's death benefits and pension. I would never have even applied to college without knowing that. My kids will know we will help where we can but we will be open and honest about our financial capabilities when it comes to college. I am a hs teacher and know hefty scholarships are very uncommon. Plus, my H and I make a lot so we know the kids won't qualify for much aid. If my kid wants to go to an expensive school we will have honest conversations about what that will mean for their future.

[Poppy]

coffee the FAFSA includes all parent assets.

A 529 is owned by YOU and you designate a beneficiary. Worst case, you can always change the beneficiary to another of your children or withdraw the money and pay the (actually not that huge, 10%) penalty on just the gains on the account.

But no matter where the money is saved (529 or not), it will be reported on the FAFSA. A 529 owned by you will "count" the same as a brokerage account.

www.forbes.com/sites/financialfinesse/2016/05/29/will-your-529-plan-hurt-your-childs-eligibility-for-financial-aid/

[lemoncupcake]

Jun 1, 2020 9:14:54 GMT -5 Poppy said:

coffee the FAFSA includes all parent assets.

A 529 is owned by YOU and you designate a beneficiary. Worst case, you can always change the beneficiary to another of your children or withdraw the money and pay the (actually not that huge, 10%) penalty on just the gains on the account.

But no matter where the money is saved (529 or not), it will be reported on the FAFSA. A 529 owned by you will "count" the same as a brokerage account to withdraw.

www.forbes.com/sites/financialfinesse/2016/05/29/will-your-529-plan-hurt-your-childs-eligibility-for-financial-aid/

Yes, I should have included that in my comment above. It will still count because it should - it represents resources that you have at your disposable that other families don’t.

But putting it in a brokerage vs 529 helps to draw a line between an entitled brat thinking that it’s “their money” to do with as they please.

[Poppy]

Jun 1, 2020 9:33:38 GMT -5 lemoncupcake said:

Jun 1, 2020 9:14:54 GMT -5 Poppy said:

coffee the FAFSA includes all parent assets.

A 529 is owned by YOU and you designate a beneficiary. Worst case, you can always change the beneficiary to another of your children or withdraw the money and pay the (actually not that huge, 10%) penalty on just the gains on the account.

But no matter where the money is saved (529 or not), it will be reported on the FAFSA. A 529 owned by you will "count" the same as a brokerage account to withdraw.

www.forbes.com/sites/financialfinesse/2016/05/29/will-your-529-plan-hurt-your-childs-eligibility-for-financial-aid/

Yes, I should have included that in my comment above. It will still count because it should - it represents resources that you have at your disposable that other families don’t.

But putting it in a brokerage vs 529 helps to draw a line between an entitled brat thinking that it’s “their money” to do with as they please.

I guess so, but good luck to my kids getting any of my money that I do not choose to give them. Lol.

I mean, the odds of the kid actually looking closely at and understanding the FAFSA seem low to me in the first place. But again, the account is owned by the parent, who controls the designated beneficiary and the withdrawals. So, tough cookies, entitled brat kid.

[Poppy]

That said, I do feel an obligation to help my kids with college to at least some degree, as I stated in my first post on reply to the OP. My financial success will affect their ability to get aid and I feel it's the right thing to do anyway. But as I mentioned before, it's not a blank check and I'll evaluate the situation when the time comes.