saving for jr

[jimmyengland]

we just had a baby boy 3 wks ago he is wonderful and the best christmas gift we could possibly have. We got some money for his baby shower and obviously with christmas he will be getting more money. Right now i have set his money to one side and it is just collecting dust. My question is what and where do you recommend i should save his money. What do you all do for your kids all advice is welcome and thank you in advance. I wish you all a very merry christams and a happy new yr.

[sfalexi]

When are you gonna give him his money? Is it set aside for a specific purpose (college, and that's IT), cause there are savings programs for college that may have different rules than a general savings account. And do you want to be able to tap into it at any point for anything or will it definitely sit dormant for many years.

[disneysteve]

Are you in the US? I'm wondering due to your screen name. If so, open a 529 plan and start putting that money to work toward his college education. What better gift could you give him?

[jimmyengland]

yes i am in the usa. i plan on him not really being able to touch this money until he is at least 18 although i do not want him to be forbidden from using this money at some point if it is absolutely necessary. please can u tell me more about this 529 thing. i really hope that he wil go to college as both his parents did but what happens if he doesnt. other features of 529 etc. thanks in advance. does anyone else use any other form of saving for them?

[Like2Plan]

jimmyengland,
Congratulations and best wishes to you.
From which state do you hail? There are many different 529 plans offered with different features. Most are open to non-residents. Some states offer a state tax write off or other incentives if you invest in your own state's plan.

[disneysteve]

please can u tell me more about this 529 thing.

The best place to learn about college savings options is Savingforcollege.com - The internet guide to funding college and Section 529 college savings plans.. That site will teach you all you need to know and answer any questions you may have.

[minnie1928]

While you are exploring your 529 options, take a look at Upromise Welcome, Money for college through Shopping Online, eCoupons, Grocery, Restaurants, Upromise Credit Card, $ Finance, Auto, Home, & More. I've "earned" about $400 for my kids by simply buying things that I would've bought anyway (groceries, clothing, etc). You can also have relatives sign up on behalf of your child to earn even more money for school and it doesn't cost anything.

[sfalexi]

I have a question on the 529. I understand that it's money that grows for college, and it's express use is to be for college, but what happens if you've saved up all this money, and then the kid gets a scholarship? I mean, that's great, but what happens to the money you've saved? Can you still get it back somehow?

Alexi

[kork13]

I have a question on the 529. I understand that it's money that grows for college, and it's express use is to be for college, but what happens if you've saved up all this money, and then the kid gets a scholarship? I mean, that's great, but what happens to the money you've saved? Can you still get it back somehow?

Alexi

A couple options... 529's can be transferred to other family members -- another child, or even the parents. Also, they can be used for ANY education expenses -- bachelor's degree, master's or other advanced degrees, room and board, etc. I believe you can even use those funds to buy the student a laptop for classes. The rules for using 529's are pretty generous, and there should be little reason to not use up available 529 money.

However, if all else fails, you can still withdraw it for non-education reasons, I believe there is just a penalty applied (don't know the details).

[Like2Plan]

A couple options... 529's can be transferred to other family members -- another child, or even the parents. Also, they can be used for ANY education expenses -- bachelor's degree, master's or other advanced degrees, room and board, etc. I believe you can even use those funds to buy the student a laptop for classes. The rules for using 529's are pretty generous, and there should be little reason to not use up available 529 money.

However, if all else fails, you can still withdraw it for non-education reasons, I believe there is just a penalty applied (don't know the details).

Kork,
In the case of scholarship, there is no penalty on the 529 $$ you withdraw for the portion of money that is offset by the amount of the scholarship-- but you do pay taxes on the earnings.

[Like2Plan]

While you are exploring your 529 options, take a look at Upromise Welcome, Money for college through Shopping Online, eCoupons, Grocery, Restaurants, Upromise Credit Card, $ Finance, Auto, Home, & More. I've "earned" about $400 for my kids by simply buying things that I would've bought anyway (groceries, clothing, etc). You can also have relatives sign up on behalf of your child to earn even more money for school and it doesn't cost anything.

I have only done a limited amount with upromise (just linked my regular CCs to purchases that I have made--the upromise earnings are in addition to my CC rewards). So, the account has just been passively collecting money. I have earned $312.00 since July 2001.
Do you have yours linked up to a 529 plan or do you periodically ask them to send you a check for the balance?