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Mags1227
Just a mommy ...
Member since 10/10 2665 total posts
Name:
M
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spinoff to College Savings Accounts
For those of you who do not have a college savings account for your kids, what do you do with any monetary gifts they receive?
DS is 6, and he gets money for gifts all the time. I have no idea what kind of account to open for him.
I'm iffy about a savings account in his name for 2 reasons:
1. I thought it affects what he can receive in financial aid since it would be counted as his income
2. I'm not sure I want my teenage son to have access to probably a few thousand dollars that he will blow on useless junk instead of on his future.
Would opening a savings in my and DHs names be the best option? any other ideas?
Can someone recommend a bank with the best interest rate where I can deposit cash?
Thanks!
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Posted 10/17/16 12:33 PM  |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: spinoff to College Savings Accounts
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
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| Posted 10/17/16 12:35 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: spinoff to College Savings Accounts
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
this.
very few banks will open a bank account for a child without it being attached to an adult. i believe Apple Bank is the only one that i know of.
another thing to think about is this... once your son has his first job, you can then start to move money from the custodial savings account to an IRA in your child's name... up to 100% of his income (assuming it's below the IRA max). i believe this would not count as his own income for financial aid purposes. if the tax laws have changed someone can correct me on this part.
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| Posted 10/17/16 12:41 PM |
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M514
Hi
Member since 8/10 6011 total posts
Name:
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Re: spinoff to College Savings Accounts
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
That's what we did.
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| Posted 10/17/16 12:43 PM |
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Mags1227
Just a mommy ...
Member since 10/10 2665 total posts
Name:
M
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Re: spinoff to College Savings Accounts
Posted by M514
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
That's what we did.
That was my initial thought, but when I looked into the minor accounts at our bank, at 16 the child become the primary account holder with full access, including ATM/Debit card. I don't want a 16 year old with access to that much money. I also would not be able to move it at that point since I would no longer be the primary account holder...
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| Posted 10/17/16 12:46 PM |
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ali120206
2 Boys
Member since 7/06 17795 total posts
Name:
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Re: spinoff to College Savings Accounts
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
This is what we have but they are under my name for monetary gifts.
We did also set up a custodial account at TD Ameritrade as well that DH monitors.
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| Posted 10/17/16 12:52 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
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Re: spinoff to College Savings Accounts
We have the bulk of their money invested in brokerage accounts. The kids have about $1000 each in UTMAs at a regular bank. This way if they really want or need something, they could go to the bank, but it limits what they have real access to.
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| Posted 10/17/16 12:55 PM |
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MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
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Re: spinoff to College Savings Accounts
Posted by Mags1227
Posted by M514
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
That's what we did.
That was my initial thought, but when I looked into the minor accounts at our bank, at 16 the child become the primary account holder with full access, including ATM/Debit card. I don't want a 16 year old with access to that much money. I also would not be able to move it at that point since I would no longer be the primary account holder... [/QUOTE
Then when he/she is 15 you can change where it is if you are scared about that.
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| Posted 10/17/16 12:56 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: spinoff to College Savings Accounts
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
This.
She is only 6 years old but has a hefty sum in there already!
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| Posted 10/17/16 1:03 PM |
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NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
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Re: spinoff to College Savings Accounts
Posted by Mags1227
Posted by M514
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
That's what we did.
That was my initial thought, but when I looked into the minor accounts at our bank, at 16 the child become the primary account holder with full access, including ATM/Debit card. I don't want a 16 year old with access to that much money. I also would not be able to move it at that point since I would no longer be the primary account holder...
At 16, you still have the final say over them so you just don't give them the debit card etc.
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| Posted 10/17/16 1:04 PM |
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drpepper318
MIR MIR MIR!
Member since 6/07 8274 total posts
Name:
me
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Re: spinoff to College Savings Accounts
Posted by Mags1227
Posted by M514
Posted by JDubs
We opened up custodial accounts (under DH's name) for them at the bank we have our accounts at. Whenever we get $ as gifts we deposit it in there.
That's what we did.
That was my initial thought, but when I looked into the minor accounts at our bank, at 16 the child become the primary account holder with full access, including ATM/Debit card. I don't want a 16 year old with access to that much money. I also would not be able to move it at that point since I would no longer be the primary account holder...
My kids don't have access to theirs until age 21.
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| Posted 10/17/16 2:07 PM |
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mommyagain3
LIF Infant
Member since 6/15 144 total posts
Name:
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Re: spinoff to College Savings Accounts
Posted by Mags1227
For those of you who do not have a college savings account for your kids, what do you do with any monetary gifts they receive?
DS is 6, and he gets money for gifts all the time. I have no idea what kind of account to open for him.
I'm iffy about a savings account in his name for 2 reasons:
1. I thought it affects what he can receive in financial aid since it would be counted as his income
2. I'm not sure I want my teenage son to have access to probably a few thousand dollars that he will blow on useless junk instead of on his future.
Would opening a savings in my and DHs names be the best option? any other ideas?
Can someone recommend a bank with the best interest rate where I can deposit cash?
Thanks!
Yes, an account owned by your son will affect his financial aid and would be considered his money at the age of majority to do with as he pleases. You can avoid this by keeping a separate account in your name for him. That way, only a small portion is used in determining financial aid and you maintain control until you wish to give it to him.
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| Posted 10/17/16 2:13 PM |
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