Talk to me about savings accounts/plans/investments for kids

[emeyer76]

Originally Posted by smores I know this is a day old, but we have an OH 529. They are highly rated and so easy... you set it up online and get the paperwork in the mail.

Hi neighbor! Thanks I have been so buried at work that I haven't dug in yet, but glad to know it's easy!

[smores]

No problem! I think it's called College Advantage? I didn't even see you were in Loveland until just now, either... lol only noticed the Ohio part. I think we're moving to the east side in the spring

[MommaLEB]

Originally Posted by kushie tushie We have mutual fund for the kids. I dont remember exactly what kind but I liked the idea better then a 529. I wasnt a huge fan of the 529 b/c it can *only* be used for school. Well I would love my kids to go to college but if they dont? Then they dont get to use the money we set a side for them. We decided me just want to gift them money as a young adult for a big life event, be it school, wedding, house...what have you. Amanda . Blaming my phone for typos and crap.

We decided that the first priority for the savings is school, but if the kids can get through on scholarships, grants, and out of pocket, they can have the money for a car, or a house, or a wedding, whatever they want. That way they still have incentive to try for scholarships and the like. We are also okay with them not going to school as long as they have a career plan of some sort.

[kushie tushie]

Originally Posted by MommaLEB We decided that the first priority for the savings is school, but if the kids can get through on scholarships, grants, and out of pocket, they can have the money for a car, or a house, or a wedding, whatever they want. That way they still have incentive to try for scholarships and the like. We are also okay with them not going to school as long as they have a career plan of some sort.

I think you misread my post.
Of course I would love all my kids to go to college but in case they dont I dont want their money to be in an account that is going to penalize them for using it. I didnt go to college (I went to beauty school) and my mother still gave me all the money she had been investing for me.

We have a high yield saving and mutual fund for each child. The money isnt going to be a $ 75,000 blow gift. Of course it will be for school first (with encouragement for scholarships first). If they dont go to college then mom and dad will help them decide what will be a smart move for that money.

I just dont want the money in a specific account and then have to pay a huge amount in fines if my kids decide college isnt for them.

Amanda . Blaming my phone for typos and crap.

[bcb1961]

529 plans can be used for any type of higher education, including vocational schools, and can also be used for books, room and board. So it's a broader scope than just traditional 'college'. They can also be passed on to younger children with no penalty. So we are doing a 529 plan for our oldest, but will probably do some type of CD/other type of savings for your youngest.

We also use the OH plan even though we live in TN. It is one of the most well regarded plans. We have no state income tax so our TN plan doesn't give us any tax advantages that another state wouldn't.