Savings accounts

ElizabethS · #1 May 15th, 2011, 06:10 AM

Who all has started a savings account for their LO? I was just recently able to resume adding to our three's accounts...but seeing as how I work in the bank it was a given that I open them up savings lol.

So, who has started saving for their LO?

#2 May 15th, 2011, 06:38 AM

Not me :/

shockandawe · #3 May 15th, 2011, 08:14 AM

We opened an education fund for Maggie when she was 3 months old. We deposit $25/month at the moment. When I'm back at work, I'll increase it. IT's similar but different from a real savings account. Our gov't adds a grant to this account when it reaches and maintains a certain balance. I'll open her a savings account when she's a bit older and learning how to use her own piggy bank. We had accounts when we were young, and I think it did me well to understand the value of money and the whole banking process. I think it's good to start them early.

Wish my retirement savings would grow the way her education fund is growing!

Jule'sMomInOR · #4 May 15th, 2011, 01:04 PM

We started a 529 college savings plan for Juliana before she was conceived, and just opened another one for her theoretical future sibling. We put in the max that we can get a tax deduction on each year. It helps because Oregon state taxes are very high.

We also opened a Roth IRA for her. Technically we can only put in what she has earned in income, but since she was a baby model for my photographer friend and earned $300 worth of free prints, we were able to put that much in. :-)

My MIL is giving her savings bonds for birthday/Christmas since she already has plenty of toys. We have them in a safe. No savings account yet, though.

sweetliberty · #5 May 15th, 2011, 01:06 PM

We save 100 dollars/month for college for him.

starrsgirl · #6 May 15th, 2011, 01:36 PM

I have $$ set aside right now but am still debating between a 529 and ESA. I plan to decide this month. I think I'm leaning towards ESA. I actually asked about this in another thread but am still torn. (I'm the finance person in the family and still learning all of this stuff since I quit my job.)

Emmett also has the GI Bill from my hubby so he should be good for college. If there was a theoretical 2nd kid, then we would need to focus on that kid's savings more.

I will probably start a kids savings account for Emmett when he is school age to teach him savings and financial responsibility (allow him to put money in and save up for long term goals.)

.s.o.p.h. · #7 May 15th, 2011, 04:30 PM

I will but haven't yet.
So how does paying for college work in america cause I don't think it's at all similar to here

AndiNW · #8 May 15th, 2011, 04:47 PM

Both kids have an RESP. I put in $100/month for each of them. I use my "Harper's Hundred" - the government gives us $100/month for each child under 6 to help with childcare costs or to help moms to stay at home. On top of that, the government provides grants depending on how much you contribute. Unfortunately, DD's runs out next year, so we'll have to start using our "own" money. It's amazing how quickly it accumulates!

Both kids also have a savings account. One of the banks I deal with offered a $25 bonus if you opened a savings account for your children. I figured it was free money, so I did it. Now I contribute $20 a paycheck for each of them. I'm not sure what we're going to do with it yet....

starrsgirl · #9 May 15th, 2011, 06:57 PM

Huh....don't know what the rest of you think, but college is ridiculous in the U.S. and there aren't any matching programs or anything. Although you can do a local community college for reasonable cost, other universities are very expensive. My undergrad was $40K per year and we (my parents and I) had to come up with all of it. If you are really poor you can get some grants (free money) or financial aid (loans that you will be paying on for the rest of your life, haha).

So, for me, it's super important I save as much $$ as I can.

Alison79 · #10 May 15th, 2011, 08:13 PM

We are following Dave Ramsey's debt payoff plan so we aren't saving for college now, but will be in a few years when all of our debt is paid off. I don't know that we will be able to fully fund 6 college educations, but I paid my own way through college and have made it a priority to pay off my loans as quickly as possible and will encourage my children to do the same.

starrsgirl · #11 May 16th, 2011, 09:34 AM

Quote:

Originally Posted by Alison79

We are following Dave Ramsey's debt payoff plan so we aren't saving for college now, but will be in a few years when all of our debt is paid off. I don't know that we will be able to fully fund 6 college educations, but I paid my own way through college and have made it a priority to pay off my loans as quickly as possible and will encourage my children to do the same.

We are doing Dave Ramsey too! Love it!

sfarrow3 · #12 May 16th, 2011, 10:06 AM

I also paid for my own college and will also encourage my children to do that. We have started a savings for both kids, but I have no intention to pay for ALL of thier college education.

nat1970 · #13 May 16th, 2011, 11:39 AM

All 3 have savings accts that will probably used more as a car fund. Our other investments will cover college expenses. We may have the kids get loans etc for school. Will give them more incentive to finish school and bust their butts if they are paying for it themselves. Then once they show me their degree we will pay off their loans. We are a debt free family other than our home and I don't want my kids having to go into debt when they are starting their new careers. Also, DH's GP's left the kids money for college that his parents are holding in their accts. Be careful with 529's. I have 2 friends who are getting ready to pay for college for their kids and there isn't alot of $ in the accts because the market is down so much.

Hollybear · #14 May 16th, 2011, 04:27 PM

Quote:

Originally Posted by Jule'sMomInOR

We started a 529 college savings plan for Juliana before she was conceived, and just opened another one for her theoretical future sibling. We put in the max that we can get a tax deduction on each year. It helps because Oregon state taxes are very high.

.

It is crazy coming from Texas, although I do like the not having sales tax thing

AndiNW · #15 May 16th, 2011, 04:59 PM

Quote:

Originally Posted by starrsgirl

We are doing Dave Ramsey too! Love it!

What is Dave Ramsey?

Lilly Bella · #16 May 16th, 2011, 05:02 PM

We do Dave Ramsey too! But we still have a college plan for all 3 our kids. I would love to pay a good part of their colleges, but do expect them to pay for it as well. We are still paying our college loans off and will forever (it's the only debt we have right now besides the house and one car, it's last on our snowball) and I hate it :eyeroll:

hsmaldo · #17 May 17th, 2011, 07:26 AM

Quote:

Originally Posted by sfarrow3

I also paid for my own college and will also encourage my children to do that. We have started a savings for both kids, but I have no intention to pay for ALL of thier college education.

We've opened savings accounts for both girls as soon as they were born and put any money that we got for birthdays, holidays, etc. in there. We contribute a set amount monthly. I think instead of a 529, we're going to do a whole life insurance policy for each of them.

Wren · #18 May 17th, 2011, 11:19 AM

We've been meaning to open a 529 all year and still haven't gotten around to doing it. There are just so many to choose from and I don't really know how to figure out what the best is. Both sets of grandparents want to contribute, and I don't know if there is a limit to the total contribution, or if it is by individuals or what. I need help!!

ElizabethS · #19 May 17th, 2011, 11:23 AM

We do Dave Ramsey too! We took Financial Peace University. I paid for my own college and still haven't started paying back my loans I just keep having to defer them until DH gets a job and the kids are school age probably.

We have no plan on paying for all 5's college education. First, DH's exes already have college funds for theirs, and DH helps contribute to it monthly, but they help a LOT with it since they are only children for each of them. For ours, we can only put $10/mos in each child's savings but whenever I get extra (like selling something or getting a bonus), I try to put some in our savings and a portion in their minor savings. Unfortunately our kids will have to work hard in school, get scholarships, and help pay for some of their college. But I think it builds character and responsibility.