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MrsKelly
just hangin' around...
Member since 11/06 6305 total posts
Name:
Krista
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college fund for baby
i am looking to set up a college fund for my dd... i am due in october. i figure the earlier i start, the better. may as well get used to the deduction from our paycheck/account etc now.
anyway, my sister set up one when her daughter was young, in her daughter's actual name. it was through her bank and they just deducted X amount from her own account once a month to put it into my niece's account.
i believe our jobs have something where it can come right out of our check, before our check is even deposited into our bank accounts, and it rolls over into some kid of college fund.
i'm just wondering what everyone else did/does... i don't know much about this and i want to explore and find the best option.
what did you do? thanks!!
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Posted 6/25/12 11:04 AM  |
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Re: college fund for baby
I'm wary of this because I think if child goes to take loans out for college, the account will be shown and they can be denied. I have known people who have "hid the money under the mattress" in a relatives account, for example because of this.
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| Posted 6/25/12 11:07 AM |
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KvsGrl
Round 2!!
Member since 1/07 1202 total posts
Name:
Samantha
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Re: college fund for baby
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
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| Posted 6/25/12 11:19 AM |
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MrsKelly
just hangin' around...
Member since 11/06 6305 total posts
Name:
Krista
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Re: college fund for baby
Posted by KvsGrl
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
i believe this is what we can do through work... we both are nyc employees.
do you know if this is something that will hinder a child from getting student loans etc? also, does the $$ come out of your check BEFORE taxes? does it show up on your paystub?
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| Posted 6/25/12 11:54 AM |
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rkl1130
LIF Adult
Member since 10/07 1476 total posts
Name:
Rose Ann
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Re: college fund for baby
Posted by KvsGrl
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
We did the same thing and set up a 529 shortly before DD was born. DH gets money automatically deducted from his paycheck and I believe it's before taxes. In addition, our parents sometimes directly deposit money into the account for b-days, holidays or when they have extra.
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| Posted 6/25/12 12:22 PM |
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MrsKelly
just hangin' around...
Member since 11/06 6305 total posts
Name:
Krista
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Re: college fund for baby
Posted by rkl1130
Posted by KvsGrl
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
We did the same thing and set up a 529 shortly before DD was born. DH gets money automatically deducted from his paycheck and I believe it's before taxes. In addition, our parents sometimes directly deposit money into the account for b-days, holidays or when they have extra.
I was looking to set this up now, but it requests the child's SSN
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| Posted 6/25/12 12:38 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: college fund for baby
Posted by cncforever
I'm wary of this because I think if child goes to take loans out for college, the account will be shown and they can be denied. I have known people who have "hid the money under the mattress" in a relatives account, for example because of this.
This is not true. ANy student with decent credit can get a loan. It is just for need based grants. And to tell you the truth you have to be making about poverty level to qualify for these grants.
A savings plan will not disqualify anyone from getting loans!
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| Posted 6/25/12 12:54 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: college fund for baby
Honestly who knows what kinds of grants will be available by the time our kids go to college. I rather save as much as I can now. We have a 529 for DD. Money is deducted out of my paycheck and put directly into her account every week. It is a NYS tax write off (not federal). I like it so far.
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| Posted 6/25/12 1:03 PM |
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jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
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Re: college fund for baby
Posted by MrsKelly
Posted by rkl1130
Posted by KvsGrl
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
We did the same thing and set up a 529 shortly before DD was born. DH gets money automatically deducted from his paycheck and I believe it's before taxes. In addition, our parents sometimes directly deposit money into the account for b-days, holidays or when they have extra.
I was looking to set this up now, but it requests the child's SSN
Yes you need the childs SS#.
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| Posted 6/25/12 1:04 PM |
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sfp0701
Liam's Mommy!
Member since 1/07 9764 total posts
Name:
Tricia
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Re: college fund for baby
Posted by MrsKelly
Posted by rkl1130
Posted by KvsGrl
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
We did the same thing and set up a 529 shortly before DD was born. DH gets money automatically deducted from his paycheck and I believe it's before taxes. In addition, our parents sometimes directly deposit money into the account for b-days, holidays or when they have extra.
I was looking to set this up now, but it requests the child's SSN
MY MIL started this for DS. You have to wait until they are born. I don't know if it affects loans. I would think not since it's a government thing but, I don't know. I don't put any money into but, MIL does.
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| Posted 6/25/12 1:19 PM |
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sfp0701
Liam's Mommy!
Member since 1/07 9764 total posts
Name:
Tricia
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Re: college fund for baby
Posted by alli3131
Posted by cncforever
I'm wary of this because I think if child goes to take loans out for college, the account will be shown and they can be denied. I have known people who have "hid the money under the mattress" in a relatives account, for example because of this.
This is not true. ANy student with decent credit can get a loan. It is just for need based grants. And to tell you the truth you have to be making about poverty level to qualify for these grants.
A savings plan will not disqualify anyone from getting loans!
You can get private loans but, the stafford loans are based on income and savings. The grants you do need to be very close to poverty to get.
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| Posted 6/25/12 1:20 PM |
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Strawberry2468
It's summatime
Member since 3/09 4739 total posts
Name:
Christine
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Re: college fund for baby
We have a upromise account and put $ into a 529 every month. We have been for years now. Once they are born we can assign the account to them.
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| Posted 6/25/12 1:24 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: college fund for baby
Posted by sfp0701
Posted by alli3131
Posted by cncforever
I'm wary of this because I think if child goes to take loans out for college, the account will be shown and they can be denied. I have known people who have "hid the money under the mattress" in a relatives account, for example because of this.
This is not true. ANy student with decent credit can get a loan. It is just for need based grants. And to tell you the truth you have to be making about poverty level to qualify for these grants.
A savings plan will not disqualify anyone from getting loans!
You can get private loans but, the stafford loans are based on income and savings. The grants you do need to be very close to poverty to get.
I received Staffod loans for school and had a pretty good income and savings. I was never denied or told I could only get a certain amount. There is a max you can borrow but that is set based on the school not your income/savings etc.
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| Posted 6/25/12 1:35 PM |
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rkl1130
LIF Adult
Member since 10/07 1476 total posts
Name:
Rose Ann
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Re: college fund for baby
Posted by alli3131
I received Staffod loans for school and had a pretty good income and savings. I was never denied or told I could only get a certain amount. There is a max you can borrow but that is set based on the school not your income/savings etc.
Yes!
Stafford loans are not income based - private loans are. The Stafford loans have a yearly cap on them, so that's the catch to it. You can take out up to that cap. I had to do that when I was in college and so did my brother.
Like another poster mentioned, we also have a Upromise card in addition to a 529 account for DD. We put everything on the card and pay it off monthly. We figure - every little bit helps and we do see the accumulation.
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| Posted 6/25/12 2:36 PM |
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MrsKelly
just hangin' around...
Member since 11/06 6305 total posts
Name:
Krista
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Re: college fund for baby
Posted by Strawberry2468
We have a upromise account and put $ into a 529 every month. We have been for years now. Once they are born we can assign the account to them.
so you opened a 529 in your name, and then will transfer it into their name once they are born?
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| Posted 6/25/12 7:31 PM |
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MrsKelly
just hangin' around...
Member since 11/06 6305 total posts
Name:
Krista
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Re: college fund for baby
did anyone do anything OTHER than a 529? it seems like that is what we are going to be leaning towards... i just didn't know if there were any other, better options.
i know my sister had one bank account under her daughter's name for college savings, and one bank account in her name for the same thing - that way less money would show up for each of them once my niece started applying for scholarships and whatnot.
dh and i were discussing that and i think we will probably do the 529 in her name once she is born... and have a separate bank account in our name but dedicate that to her, to deposit any extra $$, checks she may get throughout the years, etc.
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| Posted 6/25/12 7:34 PM |
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TheDivineMrsM
2 girls 4 me!
Member since 8/08 7878 total posts
Name:
Mama mama mama....
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Re: college fund for baby
Posted by KvsGrl
I have a 529 for my DS. We signed up directly thru NYS and contributions are tax deductible up to $10,000 per year. The directions are very straightforward on the website.
We have a 529 also. We needed to wait until DD was born b/c we needed a name, birthdate, and a social security number to set it up.
eta: You can have a regular savings account, put money in CDs, bonds, buy stocks, etc. It doesn't have to be a 529 plan.
Message edited 6/25/2012 8:58:52 PM.
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| Posted 6/25/12 8:57 PM |
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nycgirl
Angels!
Member since 3/09 7721 total posts
Name:
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Re: college fund for baby
We did a savings account for our DC.
Comes out of my paycheck every month.
It's not high interest... but it gives the most flexibility.
I didn't find the tax benefits on the 529 plans to be that great. I thought (for whatever reason) it was going to be pre-tax.
With the direct deposit from paycheck method... you do get used to "making" that much less & it grows fast without you thinking about it. When it gets to a considerable amount, we will actually pay to have someone invest it wisely... but now it's just a small nest egg.
As for scholarships and having money under a kid's name... I spent a considerable amount of time talking to a financial adviser when I was still getting educated. She stated that the school I went to:
1. Takes all the kid's money (my $$) as available funds... so I USED my savings.
2. Takes a portion of the parent's saving accounts & income as available funds.
3. Consider part of parent's assets as available funds (house, cars... yes.. they asked make & model).
I believe individual schools have different guidelines.
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| Posted 6/26/12 8:14 AM |
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JenMarie
One day at a time
Member since 11/07 7397 total posts
Name:
Jennifer
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college fund for baby
We just have a savings account for DD. I didn't want to setup an account specific to college because for all I know, she may decide it's not for her. Her account is with BFCU with a decent rate.
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| Posted 6/26/12 8:23 AM |
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