rt2dz
DIS Veteran
- Joined
- Oct 26, 2004
- Messages
- 5,596
We set up a college savings as soon as possible after they are born. Right now all three have the first year set aside, or what should equate to that. The younger they are when you put funds aside, the less you actually have to put aside.
DH paid his way through college by working hard, struggling in the rest of his life, finicial aid and a few loans. I resent the idea that I'm paying for his loans now. It also took him a while since he didn't always have the money to pay for it. I went later in life because I had to pay for it myself. I'd like to give my kids (and future spouses) the leg up on that. They will have enough to pay for and struggle with in life without that added burden--car payments, house bills, medical costs, saving for their own retirement, etc.
I do not contribute to their college funds in any way that will make us suffer. For example, we contribute to our retirement before their college savings. And I don't plan on them getting their inhertiance until they are old and gray.
I do have a limit on what I'll pay. We are trying to make sure we set aside enough for 5 years of a private school. That way they can go anywhere they want, provided they get in and they don't need to feel trapped if they want to change majors. If they use less, great, maybe they will have something for a graduate degree. If they run out of their funds, then they will have to fill in the gaps.
What we have is a trust so it can only be used for higher education. We then have also a upromise account just to gleam any extra that may or may not come in--don't really count that in as our planning for their education. Any money they receive at birth, birthdays, Christmas, etc, goes into a savings account and as they get older they can use that any way they choose. That is where they can get funds to go purchase a car, buy clothes, whatever, etc.
DH paid his way through college by working hard, struggling in the rest of his life, finicial aid and a few loans. I resent the idea that I'm paying for his loans now. It also took him a while since he didn't always have the money to pay for it. I went later in life because I had to pay for it myself. I'd like to give my kids (and future spouses) the leg up on that. They will have enough to pay for and struggle with in life without that added burden--car payments, house bills, medical costs, saving for their own retirement, etc.
I do not contribute to their college funds in any way that will make us suffer. For example, we contribute to our retirement before their college savings. And I don't plan on them getting their inhertiance until they are old and gray.
I do have a limit on what I'll pay. We are trying to make sure we set aside enough for 5 years of a private school. That way they can go anywhere they want, provided they get in and they don't need to feel trapped if they want to change majors. If they use less, great, maybe they will have something for a graduate degree. If they run out of their funds, then they will have to fill in the gaps.
What we have is a trust so it can only be used for higher education. We then have also a upromise account just to gleam any extra that may or may not come in--don't really count that in as our planning for their education. Any money they receive at birth, birthdays, Christmas, etc, goes into a savings account and as they get older they can use that any way they choose. That is where they can get funds to go purchase a car, buy clothes, whatever, etc.
Fortunately, Virginia's was rated one of the best, and is guaranteed. There are no penalties if the child doesn't go or gets a scholarship - you just get the money back, w/ some pitiful interest. There are big penalties if you take it out and dont use it for school before the child graduates high school.
