RESPs?
M
Hi Everyone,
Have any of you thought of saving money for the possbility of future university or college education?
Thanks,
Marissa
Have any of you thought of saving money for the possbility of future university or college education?
Thanks,
Marissa
Joyce Fetteroll
On Sep 23, 2010, at 11:17 AM, M wrote:
decides on college and the money isn't there *when it could have been*
that's going to be a giant OOPs that can't easily be corrected.
Joyce
[Non-text portions of this message have been removed]
> Have any of you thought of saving money for the possbility of futureThe money can always be used for something else, but if a child
> university or college education?
decides on college and the money isn't there *when it could have been*
that's going to be a giant OOPs that can't easily be corrected.
Joyce
[Non-text portions of this message have been removed]
M
> The money can always be used for something else, but if a childYes, that is something I've been thinking about alot lately. I guess we'll have to have a family meeting about that. Eventhough the kids are still young they should have a say in planning for their future. I think our best bet is to put something away for the future if needed, and plan our other activities carefully.
> decides on college and the money isn't there *when it could have been*
> that's going to be a giant OOPs that can't easily be corrected.
>
> Joyce
Thanks.
Marissa
Kerryn LH
Our kids each have a bank account, and a small amount of money goes in
there each fortnight. When they're older that money will be there and
while it won't cover a university couse (our income simply doesn't
allow us to save any more than we do) it might help them by a car or
complete a trade course, or contribute to university if that's what
they want to do.
there each fortnight. When they're older that money will be there and
while it won't cover a university couse (our income simply doesn't
allow us to save any more than we do) it might help them by a car or
complete a trade course, or contribute to university if that's what
they want to do.
The Coffee Goddess
>>>..Our kids each have a bank account, and a small amount of money goes inthere each fortnight. When they're older that money will be there and
while it won't cover a university couse (our income simply doesn't
allow us to save any more than we do) it might help them by a car or
complete a trade course, or contribute to university if that's what
they want to do.>>>
Also, especially if you don't have much money, look into what state programs you
might be eligible for. Here in Washington state you can go to the first two
years of college for free if you are a junior or senior in high school--but
being unschoolers, WE decide when that is, up to the age of 21. Because of that
my 18 yo daughter is this year a "junior" and taking college classes for free.
I know other states have other programs--like free tuition for "A" average in
high school--but again, *you* write the transcript and can give whatever grade
you need ;) It's all about working the system.
Dana
[Non-text portions of this message have been removed]
M
Awesome. Thanks! I still have to go set up preauthorized payments for our kids accounts.
Marissa
Marissa
Kelly Lovejoy
-----Original Message-----
From: M <mharbajan@...>
Hi Everyone,
Have any of you thought of saving money for the possbility of future university
or college education?
-=-=-=-=-
Thought about it. Decided against it.
We started putting $$ away for Cameron when he was a tot (maybe three?). I had a friend who had two daughters, ten and 12,
and I asked her about college funds. She said that they had put nothing away. She expected the girls to get scholarships and grants
(there are millions of dollars of untapped grant $$ that don't get used every year) to pay for college. She had them in a private school,
so college wasn't going be much more than their yearly tuition at high school. They went on scholarships and grants.
So since he was a baby, we've put $150/month away for Cameron. It's up to $14,000 now. Duncan has less, but he's only 14. If either decides
to go to college, we'll be happy to help him, but we'd expect to spend a lot of time researching grants and scholarships and not tap into
*that* money. We hope to use it as a gift of a down payment for their first house or to help open a business.
There are many, many ways to afford college without going into debt or spending all the savings on it. You just have to be clever!
~Kelly
Kelly Lovejoy
"There is no single effort more radical in its potential for saving the world than a transformation of the way we raise our children." Marianne Williamson
[Non-text portions of this message have been removed]
From: M <mharbajan@...>
Hi Everyone,
Have any of you thought of saving money for the possbility of future university
or college education?
-=-=-=-=-
Thought about it. Decided against it.
We started putting $$ away for Cameron when he was a tot (maybe three?). I had a friend who had two daughters, ten and 12,
and I asked her about college funds. She said that they had put nothing away. She expected the girls to get scholarships and grants
(there are millions of dollars of untapped grant $$ that don't get used every year) to pay for college. She had them in a private school,
so college wasn't going be much more than their yearly tuition at high school. They went on scholarships and grants.
So since he was a baby, we've put $150/month away for Cameron. It's up to $14,000 now. Duncan has less, but he's only 14. If either decides
to go to college, we'll be happy to help him, but we'd expect to spend a lot of time researching grants and scholarships and not tap into
*that* money. We hope to use it as a gift of a down payment for their first house or to help open a business.
There are many, many ways to afford college without going into debt or spending all the savings on it. You just have to be clever!
~Kelly
Kelly Lovejoy
"There is no single effort more radical in its potential for saving the world than a transformation of the way we raise our children." Marianne Williamson
[Non-text portions of this message have been removed]
Debra Rossing
We have money from my pay going to a 529 and my dad has also been
putting away money in 529 (or similar) plans for all of his grandkids.
The thing we like about the 529 is that, while it is earmarked for
education, it can be transferred. So, if DS decides he wants to use 25%
of it to go to electrician school, then DH can use the other 75% for
grad school or we can transfer it to a cousin who decides to go to med
school or whatever. The only catch is that it has to be a relative. Not
a big deal since DS has half a dozen cousins, most around his age, and
any of them (or me or DH) can use that money.
--Deb R
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putting away money in 529 (or similar) plans for all of his grandkids.
The thing we like about the 529 is that, while it is earmarked for
education, it can be transferred. So, if DS decides he wants to use 25%
of it to go to electrician school, then DH can use the other 75% for
grad school or we can transfer it to a cousin who decides to go to med
school or whatever. The only catch is that it has to be a relative. Not
a big deal since DS has half a dozen cousins, most around his age, and
any of them (or me or DH) can use that money.
--Deb R
**********************************************************************
This email and any files transmitted with it are confidential and
intended solely for the use of the individual or entity to whom they
are addressed. If you have received this email in error please notify
the system manager.
This footnote also confirms that this email message has been swept by
MIMEsweeper for the presence of computer viruses.
www.mastercam.com
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[Non-text portions of this message have been removed]
Natasha
Hello,
I'm new here, but I just wanted to chime in on this subject, since this is part of what I do for a living.
The RESP rules are fairly flexible as far as what kinds of programs qualify for being able to take the money out. Further, you can set it up as a family RESP, even if one child doesn't choose a post secondary route, another might choose that route, and be able to benefit.
Savings vehicles are very diverse, too as long as you stay away from those group RESP plans, which are inflexible and have horrendous penalties for early withdrawal, or changes to how much you contribute. It can be something as low risk as a money market fund or GIC if that's your preference - most banks do these, so you can ask at your bank or credit union.
If you are currently putting away for your children anyway, the additional 20% on the 2500/year that the government kicks in is very attractive, and if your income is under 75K net per year, then you can apply for an additional grant of 10% on the first $500 every year. I think there's an additional grant available if you're in Alberta (I'm in BC, so I'm not 100% certain on that one). As long as you're willing not to touch the money (the penalties for doing so are quite severe), then you might want to consider an RESP just so you can access the additional grant money and the growth on that money. It can add up to quite a bit over time.
Cheers!
Natasha
I'm new here, but I just wanted to chime in on this subject, since this is part of what I do for a living.
The RESP rules are fairly flexible as far as what kinds of programs qualify for being able to take the money out. Further, you can set it up as a family RESP, even if one child doesn't choose a post secondary route, another might choose that route, and be able to benefit.
Savings vehicles are very diverse, too as long as you stay away from those group RESP plans, which are inflexible and have horrendous penalties for early withdrawal, or changes to how much you contribute. It can be something as low risk as a money market fund or GIC if that's your preference - most banks do these, so you can ask at your bank or credit union.
If you are currently putting away for your children anyway, the additional 20% on the 2500/year that the government kicks in is very attractive, and if your income is under 75K net per year, then you can apply for an additional grant of 10% on the first $500 every year. I think there's an additional grant available if you're in Alberta (I'm in BC, so I'm not 100% certain on that one). As long as you're willing not to touch the money (the penalties for doing so are quite severe), then you might want to consider an RESP just so you can access the additional grant money and the growth on that money. It can add up to quite a bit over time.
Cheers!
Natasha