How do you save for your kids college?

[janette]

I quess my financial advisor needs to read up on some of these things, she still thinks we can't do both. Checked with another expert and you can do a 529 & Education IRA. Here's a link with some information on the differences.

Choosing Between an Education IRA and a 529 Plan

 

[DixieDreamer]

We have chosen to invest for our daughters college education in a portfolio that we have segregated for that purpose - but under our name and not through the tax deferred options. Although the funds are intended to send her through college... should she choose NOT to attend college... we have no intention of just handing it over to her. Therefore we wish the funds to be in our name (not gifted to the child) and not required to be used in any specific manner.

We did not get started as soon as we should have - but have for the past several years contributed $5,000 annually to this portfolio of investments. I have the opportunity at the end of each year to cash out a certain portion of my accrued but unused vacation time. We have taken to using that annual amount to fund the college savings.

When the time comes, between our savings for that purpose plus continueing income - we feel we should be able to assist her in attending a good in state college (we have several to choose from). If she should choose to attend something private or further afield... she will need to assist with either grants, or by working to provide the extra funds.

In the event she should choose not to attend college, we would provide her some "seed" money to get her started... but that would be the extent of that.

 

[imgoingtodisney]

DSs college education will hopefully begin 8yrs from this Sept. DH & I will most likely take out a loan for his education. 7yrs after that our mortgage will be paid off and I can finally get my retirement money without penalty!

 

[CyranoJones]

We started saving for DD's education from the day she was born. After we had a certain amount saved we invested it in various ways, bonds, CDs, mutual funds, etc. We were very lucky to have been investing at a time when the market did nothing but go up for the most part. Her college years were covered by us, but she got an academic scholarship that pays her tuition plus a stipend. That creates another interesting situation, LOL!

 

[BibbidiBobbidiBOO]

They each have a prepaid college plan that we bought at today's rates(actually a couple of years ago rates!) They can use at any college, any state.
We have some other savings earmarked for them, but with the stock market not real stable we invested in the prepaid for them.
I hope they each get scholarships, then they can use the prepaid money for something else !

 

[WendyZ]

We have 529's for each child. I am putting enough in them for a couple of years at a community college. Then, hopefully they can transfer to a university. We'll help them through it, but I don't want to just right a check and say here you go honey!! I think it means more when they have to work and contribute themselves. IMHO