OT: Saving for children’s college

[Echoooo]

Moving from another country to SD, we have zero in education accounts. Just did a calculation based on my son’s age. We would have to put minimum $700 each month for each child in order to cover college expenses. It is our 4th year in SD and we have not yet started saving for college, as we heard that saving for retirement is more important and we can withdraw from retirement to fund college and it is better than 529 or Coverdell when it comes to apply for financial aid. BTW, generally who can qualify for financial aid such as scholarships and grants? Does it have anything to do with family income provide no education accounts set up for kids?

[earlyretirement]

I have 2 small kids and I set up a UGMA account for them when they were born. It was difficult finding all the various benefits with each option but I felt this was the best as I can trade in their account for them. My wife and I both contribute up to $26,000 each year for each child. With compound interest it should do very well by the time they reach College age.

I read the other post where a parent worried about their kid being a loser and having all of these funds but what is there for the kids to be notified about this account? I know in my plan my wife and I never plan to tell them they have this account set up for them so they work harder at school. And maybe even use it to purchase gifts for them. For example, if the get straight A’s, being promised a car. I don’t believe there are any limitations for withdrawal as long as it’s benefitting the recipient.

[earlyretirement]

I have 2 small kids and I set up a UGMA account for them when they were born. It was difficult finding all the various benefits with each option but I felt this was the best as I can trade in their account for them. My wife and I both contribute up to $26,000 each year for each child. With compound interest it should do very well by the time they reach College age.

I read the other post where a parent worried about their kid being a loser and having all of these funds but what is there for the kids to be notified about this account? I know in my plan my wife and I never plan to tell them they have this account set up for them so they work harder at school. And maybe even use it to purchase gifts for them. For example, if the get straight A’s, being promised a car. I don’t believe there are any limitations for withdrawal as long as it’s benefitting the recipient.

[earlyretirement]

I have 2 small kids and I set up a UGMA account for them when they were born. It was difficult finding all the various benefits with each option but I felt this was the best as I can trade in their account for them. My wife and I both contribute up to $26,000 each year for each child. With compound interest it should do very well by the time they reach College age.

I read the other post where a parent worried about their kid being a loser and having all of these funds but what is there for the kids to be notified about this account? I know in my plan my wife and I never plan to tell them they have this account set up for them so they work harder at school. And maybe even use it to purchase gifts for them. For example, if the get straight A’s, being promised a car. I don’t believe there are any limitations for withdrawal as long as it’s benefitting the recipient.

[earlyretirement]

I have 2 small kids and I set up a UGMA account for them when they were born. It was difficult finding all the various benefits with each option but I felt this was the best as I can trade in their account for them. My wife and I both contribute up to $26,000 each year for each child. With compound interest it should do very well by the time they reach College age.

I read the other post where a parent worried about their kid being a loser and having all of these funds but what is there for the kids to be notified about this account? I know in my plan my wife and I never plan to tell them they have this account set up for them so they work harder at school. And maybe even use it to purchase gifts for them. For example, if the get straight A’s, being promised a car. I don’t believe there are any limitations for withdrawal as long as it’s benefitting the recipient.

[earlyretirement]

I have 2 small kids and I set up a UGMA account for them when they were born. It was difficult finding all the various benefits with each option but I felt this was the best as I can trade in their account for them. My wife and I both contribute up to $26,000 each year for each child. With compound interest it should do very well by the time they reach College age.

I read the other post where a parent worried about their kid being a loser and having all of these funds but what is there for the kids to be notified about this account? I know in my plan my wife and I never plan to tell them they have this account set up for them so they work harder at school. And maybe even use it to purchase gifts for them. For example, if the get straight A’s, being promised a car. I don’t believe there are any limitations for withdrawal as long as it’s benefitting the recipient.

[EconProf]

We put two kids through college solely on our own savings and investments. But if I had to do it again, I’d make them pay a share, however small it might be. And their share would vary directly with the uselessness of their major.
My daughter, now 30, majored in english and is an expert on mid-ninetenth century horror fiction. Despite being a whiz at math, computers, and science, never did she heed my plea to take at least one course in economics or accounting.
After graduating from a great (and expensive) school, she bounced around for years trying unsuccessfully to break into radio (NPR) producing. Now, finally, she’s working on a Master’s Degree in Accountancy on her way to a CPA, and thriving at it.
Parents need to weigh in on their kids’ decisions more than I did and lay down some rules as to the major they pick, how much they pay, and the grades they expect.

[EconProf]

We put two kids through college solely on our own savings and investments. But if I had to do it again, I’d make them pay a share, however small it might be. And their share would vary directly with the uselessness of their major.
My daughter, now 30, majored in english and is an expert on mid-ninetenth century horror fiction. Despite being a whiz at math, computers, and science, never did she heed my plea to take at least one course in economics or accounting.
After graduating from a great (and expensive) school, she bounced around for years trying unsuccessfully to break into radio (NPR) producing. Now, finally, she’s working on a Master’s Degree in Accountancy on her way to a CPA, and thriving at it.
Parents need to weigh in on their kids’ decisions more than I did and lay down some rules as to the major they pick, how much they pay, and the grades they expect.

[EconProf]

We put two kids through college solely on our own savings and investments. But if I had to do it again, I’d make them pay a share, however small it might be. And their share would vary directly with the uselessness of their major.
My daughter, now 30, majored in english and is an expert on mid-ninetenth century horror fiction. Despite being a whiz at math, computers, and science, never did she heed my plea to take at least one course in economics or accounting.
After graduating from a great (and expensive) school, she bounced around for years trying unsuccessfully to break into radio (NPR) producing. Now, finally, she’s working on a Master’s Degree in Accountancy on her way to a CPA, and thriving at it.
Parents need to weigh in on their kids’ decisions more than I did and lay down some rules as to the major they pick, how much they pay, and the grades they expect.

[EconProf]

We put two kids through college solely on our own savings and investments. But if I had to do it again, I’d make them pay a share, however small it might be. And their share would vary directly with the uselessness of their major.
My daughter, now 30, majored in english and is an expert on mid-ninetenth century horror fiction. Despite being a whiz at math, computers, and science, never did she heed my plea to take at least one course in economics or accounting.
After graduating from a great (and expensive) school, she bounced around for years trying unsuccessfully to break into radio (NPR) producing. Now, finally, she’s working on a Master’s Degree in Accountancy on her way to a CPA, and thriving at it.
Parents need to weigh in on their kids’ decisions more than I did and lay down some rules as to the major they pick, how much they pay, and the grades they expect.

[EconProf]

We put two kids through college solely on our own savings and investments. But if I had to do it again, I’d make them pay a share, however small it might be. And their share would vary directly with the uselessness of their major.
My daughter, now 30, majored in english and is an expert on mid-ninetenth century horror fiction. Despite being a whiz at math, computers, and science, never did she heed my plea to take at least one course in economics or accounting.
After graduating from a great (and expensive) school, she bounced around for years trying unsuccessfully to break into radio (NPR) producing. Now, finally, she’s working on a Master’s Degree in Accountancy on her way to a CPA, and thriving at it.
Parents need to weigh in on their kids’ decisions more than I did and lay down some rules as to the major they pick, how much they pay, and the grades they expect.

[Author]

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