An Educational Savings Plan
With the baby on the way, Ive been looking into Educational savings accounts. We believe that education plays an important role in ones life and a college education should be a great investment. I mean we went through it about 3 years ago (man we are getting really old), so we know about having those THOUSANDS OF DOLLARS in borrowed student loans and having to pay them off. A suggestion was brought to my attention that the child should have some role in their financing of college (ie. we pay for half and they pay for half). This is all dependent on each individual child and their work ethic too. Its $50 to open the account and we agreed on a monthly of $50 for this year only. We expect that amount to change once she goes back to work. Of course, the program wont be available til the child is born. :)
Side note: Updating networth today, noticing that there were some positive trends in the emergency fund and savings. We have been lagging all year on the ROTH IRA and I think that will be our main focus after we hit $5000 in the emergency fund. I want to get the 2006 IRAs done before completing it to $10k.
2 Comments:
Could you post more on the information that you have found for the education plans? What do you feel is the best plan? I have a niece about to show up in a week or so (Yay!) and I'd love to start one for her rather than to spend money on cheap toys she will just throw away! (She will get plenty from the other "aunties", anyway.) :)
Thanks!
Because the programs vary depending on the state that you live in, there isnt one specific thats right for you. Also the tax implications are a little different too. Personally I like our state's 529 plan which provides the tax advantages which decent returns. Google your states educational plans for specifics. Good luck and congrats on being an aunt!