ESA, 529, UTMA, UGMA
John and Amanda Slater
I was wondering what others are doing to save for their children's future and why.
We currently have a UTMA for each child. We had been contributing monthly, but when we realized that college was may not be the goal for our boys we stopped. Sometimes I think that was the right idea, sometimes I don't. Anyway, the boys each get a large check from my parents at Christmas that has previously been added to their accounts, but my parents do not ask for it to be.
My dilemma is whether to continue funding these accounts at all. The boys are really wanting to buy more on a daily basis and this money could mean a lot more of that. Money put away means more options later and money to spend now means more options now.
I'm not sure what children that do not go to college would do with a large amount of money at 21.
Side note: An UTMA in our state is money that can be spent by the parent at any time to fund anything other than basic expenses. It can be used for camps, computers, college, car and the remainder is given to the child when they turn 21.
Thanks in advance for you thoughts. This has been a big discussion between dh and I for at least a year. Some new perspective would be great.
Amanda
Eli 7, Samuel 6
[Non-text portions of this message have been removed]
We currently have a UTMA for each child. We had been contributing monthly, but when we realized that college was may not be the goal for our boys we stopped. Sometimes I think that was the right idea, sometimes I don't. Anyway, the boys each get a large check from my parents at Christmas that has previously been added to their accounts, but my parents do not ask for it to be.
My dilemma is whether to continue funding these accounts at all. The boys are really wanting to buy more on a daily basis and this money could mean a lot more of that. Money put away means more options later and money to spend now means more options now.
I'm not sure what children that do not go to college would do with a large amount of money at 21.
Side note: An UTMA in our state is money that can be spent by the parent at any time to fund anything other than basic expenses. It can be used for camps, computers, college, car and the remainder is given to the child when they turn 21.
Thanks in advance for you thoughts. This has been a big discussion between dh and I for at least a year. Some new perspective would be great.
Amanda
Eli 7, Samuel 6
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Laura Beaudin
If the money can be handed over when the child is 21, why not keep
funding it? That way, they'll have a nice "nest egg" that they can
use for expenses or to reinvest into RRSP's or other things.
We have RESP's in Canada (Registered Educational Savings Plans) that
while they HAVE to be used towards post secondary education, a
technical school also counts and if not used, the funds can be rolled
over into RRSP's.
Laura
At 09:00 AM 21/12/2008, you wrote:
Practical Homeschooling: http://www.practical-homeschooling.org
Works in Progress: http://picasaweb.google.co.uk/Laura.Beaudin
[Non-text portions of this message have been removed]
funding it? That way, they'll have a nice "nest egg" that they can
use for expenses or to reinvest into RRSP's or other things.
We have RESP's in Canada (Registered Educational Savings Plans) that
while they HAVE to be used towards post secondary education, a
technical school also counts and if not used, the funds can be rolled
over into RRSP's.
Laura
At 09:00 AM 21/12/2008, you wrote:
>I was wondering what others are doing to save for their children'sDon't let school interfere with your education!" --Mark Twain
>future and why.
>
>We currently have a UTMA for each child. We had been contributing
>monthly, but when we realized that college was may not be the goal
>for our boys we stopped. Sometimes I think that was the right idea,
>sometimes I don't. Anyway, the boys each get a large check from my
>parents at Christmas that has previously been added to their
>accounts, but my parents do not ask for it to be.
>
>My dilemma is whether to continue funding these accounts at
>all. The boys are really wanting to buy more on a daily basis and
>this money could mean a lot more of that. Money put away means more
>options later and money to spend now means more options now.
>
>I'm not sure what children that do not go to college would do with a
>large amount of money at 21.
>
>Side note: An UTMA in our state is money that can be spent by the
>parent at any time to fund anything other than basic expenses. It
>can be used for camps, computers, college, car and the remainder is
>given to the child when they turn 21.
>
>Thanks in advance for you thoughts. This has been a big discussion
>between dh and I for at least a year. Some new perspective would be great.
>
>Amanda
Practical Homeschooling: http://www.practical-homeschooling.org
Works in Progress: http://picasaweb.google.co.uk/Laura.Beaudin
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Sandra Dodd
-=-I'm not sure what children that do not go to college would do with
a large amount of money at 21. -=-
Kirby (22) saves money. He bought himself a nice suit last year for
the company Christmas party, and wore it again this year. He bought
a new computer a year ago, too.
Marty (nearly 20) is buying a jeep. If he got a sum of money, he
would pay off that car loan.
Holly (17) would put money into savings. She got Christmas money
from her grandparents ($100) and bought a $45 bonsai tree and put the
rest into the bank.
http://sandradodd.blogspot.com/2008/12/holly-bought-little-tree.html
We got savings bonds when they were little that can be used tax free
if they're used for higher education. Marty is thinking vaguely
about going to college, but I think it has to happen before they're
24 or some age (maybe younger than that). I've thought sometimes of
finishing grad school (having dropped out two or three times) and we
could use it for that. But I'm old. Maybe I'd rather cash them out
and pay taxes on them at some point in here.
No advance decisions like that are perfect. You might have to toss a
coin and then see how you feel about the side that came up. I think
coin tosses are good ways to make decisions. I don't go by what the
coin says, but if I find myself sharply disappointed or relieved, I
have a better idea which I really want to do.
Sandra
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a large amount of money at 21. -=-
Kirby (22) saves money. He bought himself a nice suit last year for
the company Christmas party, and wore it again this year. He bought
a new computer a year ago, too.
Marty (nearly 20) is buying a jeep. If he got a sum of money, he
would pay off that car loan.
Holly (17) would put money into savings. She got Christmas money
from her grandparents ($100) and bought a $45 bonsai tree and put the
rest into the bank.
http://sandradodd.blogspot.com/2008/12/holly-bought-little-tree.html
We got savings bonds when they were little that can be used tax free
if they're used for higher education. Marty is thinking vaguely
about going to college, but I think it has to happen before they're
24 or some age (maybe younger than that). I've thought sometimes of
finishing grad school (having dropped out two or three times) and we
could use it for that. But I'm old. Maybe I'd rather cash them out
and pay taxes on them at some point in here.
No advance decisions like that are perfect. You might have to toss a
coin and then see how you feel about the side that came up. I think
coin tosses are good ways to make decisions. I don't go by what the
coin says, but if I find myself sharply disappointed or relieved, I
have a better idea which I really want to do.
Sandra
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k
I've got something on keeping your options open... some thoughts that were
written by somebody else. And it's not what you'd expect .. or not what I'd
expect. It's a good thought and I'm going out of town today so I don't have
the time to type it out now but I will later.
~Katherine
written by somebody else. And it's not what you'd expect .. or not what I'd
expect. It's a good thought and I'm going out of town today so I don't have
the time to type it out now but I will later.
~Katherine
On 12/21/08, John and Amanda Slater wrote:
>
> I was wondering what others are doing to save for their children's future
> and why.
>
> We currently have a UTMA for each child. We had been contributing monthly,
> but when we realized that college was may not be the goal for our boys we
> stopped. Sometimes I think that was the right idea, sometimes I
> don't. Anyway, the boys each get a large check from my parents at Christmas
> that has previously been added to their accounts, but my parents do not ask
> for it to be.
>
> My dilemma is whether to continue funding these accounts at all. The boys
> are really wanting to buy more on a daily basis and this money could mean a
> lot more of that. Money put away means more options later and money to
> spend now means more options now.
>
> I'm not sure what children that do not go to college would do with a large
> amount of money at 21.
>
> Side note: An UTMA in our state is money that can be spent by the parent
> at any time to fund anything other than basic expenses. It can be used for
> camps, computers, college, car and the remainder is given to the child when
> they turn 21.
>
> Thanks in advance for you thoughts. This has been a big discussion between
> dh and I for at least a year. Some new perspective would be great.
>
> Amanda
> Eli 7, Samuel 6
>
>
>
>
>
>
>
> [Non-text portions of this message have been removed]
>
>
> ------------------------------------
>
> Yahoo! Groups Links
>
>
>
>
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Margaret
It sounds as though there is a lot of flexibility about what to do
with the money, which is nice. They could use it for college, a car,
a downpayment on a house, travelling around the world... .all sorts of
really fun things.
It sounded like your chief concern was whether or not it would be
better to spend it on things they want and love now or save it up for
something really great later. It's also good to keep in mind that
they can probably go to a state college without that money, but loans
would be probably be required.
Are your kids old enough to talk about it with you? Maybe you could
calculate how much they would probably have if you put
100/90/80....10% of the grandparent money in the account every year
and what they could do with that later. Actually, for their ages
maybe that is too many numbers... mayble all, half, and a quarter.
Maybe they will want it all now. Maybe not. Maybe some of each will
sound good to them. maybe you could suggest the answer that seems
best to you and ask them if that is OK with them to do this year. You
can always do things differently next year.
The other thing to consider is that the money that you put in now will
have much longer to grow (along with the fact that stock prices are
really low) which makes this years money seem more valuable to invest
than the check they get when they are 16 which probably won't grow
much at all.
Margaret
On Sun, Dec 21, 2008 at 8:00 AM, John and Amanda Slater
<fourslaterz@...> wrote:
with the money, which is nice. They could use it for college, a car,
a downpayment on a house, travelling around the world... .all sorts of
really fun things.
It sounded like your chief concern was whether or not it would be
better to spend it on things they want and love now or save it up for
something really great later. It's also good to keep in mind that
they can probably go to a state college without that money, but loans
would be probably be required.
Are your kids old enough to talk about it with you? Maybe you could
calculate how much they would probably have if you put
100/90/80....10% of the grandparent money in the account every year
and what they could do with that later. Actually, for their ages
maybe that is too many numbers... mayble all, half, and a quarter.
Maybe they will want it all now. Maybe not. Maybe some of each will
sound good to them. maybe you could suggest the answer that seems
best to you and ask them if that is OK with them to do this year. You
can always do things differently next year.
The other thing to consider is that the money that you put in now will
have much longer to grow (along with the fact that stock prices are
really low) which makes this years money seem more valuable to invest
than the check they get when they are 16 which probably won't grow
much at all.
Margaret
On Sun, Dec 21, 2008 at 8:00 AM, John and Amanda Slater
<fourslaterz@...> wrote:
> I was wondering what others are doing to save for their children's future
> and why.
>
> We currently have a UTMA for each child. We had been contributing monthly,
> but when we realized that college was may not be the goal for our boys we
> stopped. Sometimes I think that was the right idea, sometimes I don't.
> Anyway, the boys each get a large check from my parents at Christmas that
> has previously been added to their accounts, but my parents do not ask for
> it to be.
>
> My dilemma is whether to continue funding these accounts at all. The boys
> are really wanting to buy more on a daily basis and this money could mean a
> lot more of that. Money put away means more options later and money to
> spend now means more options now.
>
> I'm not sure what children that do not go to college would do with a large
> amount of money at 21.
>
> Side note: An UTMA in our state is money that can be spent by the parent at
> any time to fund anything other than basic expenses. It can be used for
> camps, computers, college, car and the remainder is given to the child when
> they turn 21.
>
> Thanks in advance for you thoughts. This has been a big discussion between
> dh and I for at least a year. Some new perspective would be great.
>
> Amanda
> Eli 7, Samuel 6
>
> [Non-text portions of this message have been removed]
>
>
Renee M
We are saving for both kids, currently in a Coverdell (Educational IRA). If they decide against post-secondary education and we end up taking a tax hit, so be it. They'll be doing something as adults, and pretty much everything costs money. I can imagine it funding travel, a downpayment on a home, money to start a business, a car, investment into whatever their passion is, or a host of other things. And the idea that I can help my children get a positive start to their adult life makes me happy.
Maybe I'll change my mind when they reach adulthood if it turns out I don't like the person one or both of them has become. But its hard to imagine, because I do like them an awful lot right now. They are such good-hearted people. (and I'll always love them regardless)
Either way, it won't be enough to pay for 4 yrs of college, unless the stock market rallies in a huge way between now and then. They are still preschool aged, so ya never know. ;)
But we do balance how much we can save with how much we want to spend now and how much we want to give to others. If you ask my parents or more conservative brothers, we aren't saving nearly enough. But the thing is, how we live our lives now, the experiences we can have with our children, the toys, the fun -- it will all shape them as they grow. And is already - they joy is apparent.
-Renee
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Maybe I'll change my mind when they reach adulthood if it turns out I don't like the person one or both of them has become. But its hard to imagine, because I do like them an awful lot right now. They are such good-hearted people. (and I'll always love them regardless)
Either way, it won't be enough to pay for 4 yrs of college, unless the stock market rallies in a huge way between now and then. They are still preschool aged, so ya never know. ;)
But we do balance how much we can save with how much we want to spend now and how much we want to give to others. If you ask my parents or more conservative brothers, we aren't saving nearly enough. But the thing is, how we live our lives now, the experiences we can have with our children, the toys, the fun -- it will all shape them as they grow. And is already - they joy is apparent.
-Renee
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Laureen
Heya!
On Sun, Dec 21, 2008 at 8:00 AM, John and Amanda Slater <
fourslaterz@...> wrote:
our kids think they need most at the time. We're only half-joking.
--
~~L!
~ * ~ ~ * ~ ~ * ~ ~ * ~ ~ * ~
Writing here:
http://www.theexcellentadventure.com/
Evolving here:
http://www.consciouswoman.org/
~ * ~ ~ * ~ ~ * ~ ~ * ~ ~ * ~
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On Sun, Dec 21, 2008 at 8:00 AM, John and Amanda Slater <
fourslaterz@...> wrote:
> I was wondering what others are doing to save for their children's futureWe tell people that we're saving for college, travel, or therapy, whichever
> and why.
>
our kids think they need most at the time. We're only half-joking.
--
~~L!
~ * ~ ~ * ~ ~ * ~ ~ * ~ ~ * ~
Writing here:
http://www.theexcellentadventure.com/
Evolving here:
http://www.consciouswoman.org/
~ * ~ ~ * ~ ~ * ~ ~ * ~ ~ * ~
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Sandra Dodd
-=-We tell people that we're saving for college, travel, or therapy,
whichever
our kids think they need most at the time. We're only half-joking.-=-
We used to say we were saving for Kirby's college and Marty's legal
fees and hospitalization.
Marty's never really been hurt, nor in trouble, and Kirby has a good
job that didn't need college.
I never thought a little pile of money would be a problem but tax
laws are confusing and we're still waiting to see whether Holly needs
it. We could still have therapy needs in the future, for sure.
Sandra
[Non-text portions of this message have been removed]
whichever
our kids think they need most at the time. We're only half-joking.-=-
We used to say we were saving for Kirby's college and Marty's legal
fees and hospitalization.
Marty's never really been hurt, nor in trouble, and Kirby has a good
job that didn't need college.
I never thought a little pile of money would be a problem but tax
laws are confusing and we're still waiting to see whether Holly needs
it. We could still have therapy needs in the future, for sure.
Sandra
[Non-text portions of this message have been removed]
John and Amanda Slater
--- On Sun, 12/21/08, Sandra Dodd <Sandra@...> wrote:
-=-I'm not sure what children that do not go to college would do with
a large amount of money at 21. -=-
No advance decisions like that are perfect. You might have to toss a
coin and then see how you feel about the side that came up. I think
coin tosses are good ways to make decisions. I don't go by what the
coin says, but if I find myself sharply disappointed or relieved, I
have a better idea which I really want to do.
*** This is some good advice I was expecting (and maybe hoping) more spend it now responses. It is interesting to hear so much on the saving side.
We do have enough money to take care of all our basic expenses. It would be nice to be able to say yes more to things like ice skating, bowling, new toys and small trips. Which we do provide when John works overtime, or we juggle other things. However, I would also like to be able to provide big things later. Classes, computers, cars...
I think a crystal ball would be helpful right around now....
Thanks,AmandaEli 7, Samuel 6
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John and Amanda Slater
--- On Sun, 12/21/08, Laureen <splashing@...> wrote:
On Sun, Dec 21, 2008 at 8:00 AM, John and Amanda Slater <
fourslaterz@ yahoo.com> wrote:
> I was wondering what others are doing to save for their children's future
> and why.
>
We tell people that we're saving for college, travel, or therapy, whichever
our kids think they need most at the time. We're only half-joking.
***Thinking about it this way helps. Our current goal is to pay off the house when the boys are in their early teens. We can then travel, move into a bigger house, save money, or let dh work less. Thinking of saving for the kids as part of that plan makes it feel like it is helping us move toward family goals and not just sacrificing the present for the future.
I was always raised to save, and I'm having trouble figuring out my current thoughts from how I was raised. And probably wrapped up in all of this is a good friend lost her 5 yo to a playground accident this summer. It is very hard to think of the future at the moment.
AmandaEli 7, Samuel 6
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