Saving for Children

[annetoin]

I am trying to determine the best savings vehicle for my son and am wondering what you mommies are doing to save for your children. Everyone keeps telling me to open up a 529 plan. I think that is a great idea but in the back of my mind I have to ask "what if he doesn't go to college?". While college is the main plan, I would like to leave some type of inheritance for my son regardless of whether or not he goes. I guess I don't want to be a hypocrite because I went back to school later in life.

Any advice?

 

[mommacody]

we went the route of universal trust funds for our kids, instead of the 529 for that reason. at the time of our decision, 529's couldn't be used for trade schools, and that was our main concern. i believe now that they can be.

 

[jaypea]

You may want to consider opening a high interest savings account (in YOUR name) to put savings in for your child. My DH and I found a great one online that was offering a little over 5% interest (Emigrant bank). If you do open a 529 account, don't dismiss the many that are offered through the internet-you may find a better one than the one that's offered in your state.
Good luck!
-Jen

 

[dreamyjeanie]

You can also do uniform gift to minor mutual funds.

 

[CollinsMom]

My son is 2 and 1/2 and I opened him a college savings 529 for his second birthday earlier this year.

First, I read "529s and other college savings plans for dummies" (which I still have an no loner need -- if you want it, PM me your address and I will ship). My father, who is the smartest man financially that I know, also sent me some articles from Smart Money magazine.

I live in Virginia, but I ended up opening an account with UESP - Utah Educational Savings Plan (www.uesp.com I believe). At first, it felt so silly to be a Virginia resident and have a Utah plan. However, at the time when I opened it, this plan had the highest rate of return, and the lowest maintenance fees. His money is doing really well right now.

Any money in a 529 account can be used at a college, university, trade school, anywhere that will accept financial aid basically. If your child still decides to go nowhere, you can always take out the money and take the hit (I think you lose about 10%), or you can roll it over to a family member.

I have been really pleased with the plan I decided to go with. However, it was a very difficult decision with lots of different, confusing options to choose from!

 

[CollinsMom]

Forgot to add that...

You can roll over your money from existing account to a new account. The most attractive plan this year may not be the same in a few years, so it can always be rolled over.

 

[dlavie]

I know nobody thinks about this until it happens to them, it has happened to me so I'll share.

When we had our twins, they received a lot of savings bonds etc etc.

When my autistic son turned 18 we had some troubles getting him assistance as he had assets. We had to liquidate his assets before he could get SSI and Medicaid. He could only have combined assets of $2000.

My experience is that any savings should be in the parents names.