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Thoughts on saving for your kids
Posted on 10/8/15 at 7:54 am
Posted on 10/8/15 at 7:54 am
Good morning money talk. Just looking for some opinions and recommendations on saving for my kids. I have a 6 and a 1 year old. Currently all I have as of now that even resembles a savings plan is a whole life policy that I was talked into about two years ago for my oldest. I've been regretting that decision after learning more about them on here but haven't decided what to do instead yet. Just wondering what type of savings plans people have for their kids, how much they contribute, and what their targets/intentions are for the money.
5
Posted on 10/8/15 at 8:24 am to rhanse1lsu
I opened a 529 account shortly after they were born and contributed to it when I could. By the time college started there was enough to cover most of college. I did enjoy some better times in the market. I also opened up a small investment account for them. We would put their birthday money,etc in it. I would match what they contributed so that they learned a little about retirement plans. I continued to contribute to their investment account until they graduated college. Fortunately, both kids are responsible and neither one has touched their accounts yet. I think teaching kids to be responsible with money is most important and worth more than any amount you give them. My two cents
Posted on 10/8/15 at 9:25 am to rhanse1lsu
I have a custodial account set up for each of my kids. I can use it for college expenses, weddings, or whatever. Its amazing how just a little bit a month plus all the grandparent birthday gifts and such have added up.
Weigh the tax benefits of a 529 in your state. In Mississippi, there isn't enough of a benefit to go 529 over Custodial. I think Louisiana's plan is awesome though.
A 529 limits you to college expenses. And like I said, custodials have more flexibility in investment options, and they can be used for anything. A custodial account is a good way to get in with a good financial advisor if you don't have one.
Weigh the tax benefits of a 529 in your state. In Mississippi, there isn't enough of a benefit to go 529 over Custodial. I think Louisiana's plan is awesome though.
A 529 limits you to college expenses. And like I said, custodials have more flexibility in investment options, and they can be used for anything. A custodial account is a good way to get in with a good financial advisor if you don't have one.
This post was edited on 10/8/15 at 9:28 am
Posted on 10/8/15 at 9:51 am to 79ABTEXTIGER
quote:
I would match what they contributed
My dad did this for me until I graduated high school. It really does help you learn how to save.
Posted on 10/8/15 at 9:55 am to Spitting Venom
custodial & 529 and I match gifts, etc. for the kids. They also learn about the market and check their investments regularly.
Posted on 10/8/15 at 10:03 am to rhanse1lsu
Mine are 7 and 4. We have a savings account for each of them at our CU where each payday we make a deposit into the account for each of them. Half of their birthday money goes in there (they can spend the other half however they want currently). The four year old doesn't really know about it. the 7 year old does, and we've told her if she wants to buy something with it, she needs to come talk to us and we will discuss it. So far she's only used it once and that was to buy a Hulu for her tv. (or as she calls it, a netflix box).
Posted on 10/8/15 at 10:20 am to LSUFanHouston
I'm slowly buying a dividend etf, SCHD, and reinvesting dividends. That'll get passed to the kids.
Posted on 10/8/15 at 11:45 am to rhanse1lsu
I have a UGMA (Unified Gift to Minor) account. I guess that is a custodial account.
didn't want to go 529 because it is only accessible for college expenses. I will have tuition expenses once she turns 4.
didn't want to go 529 because it is only accessible for college expenses. I will have tuition expenses once she turns 4.
Posted on 10/8/15 at 1:05 pm to Motorboat
do u guys pay taxes on the custodial accounts?
Posted on 10/8/15 at 1:38 pm to rhanse1lsu
Already do a 529 but am interested to hear if anyone has any experience or opinions on Coverdell accounts? It's got a low cap on it, but seems interesting.
Posted on 10/8/15 at 1:52 pm to anc
quote:
anc
quote:
I have a custodial account set up for each of my kids. I can use it for college expenses, weddings, or whatever
Who do you have your custodial account setup thru? I currently have a small 529 (LA START) and a small savings account setup for my daughter. Am considering opening an account thru Vanguard for her.
Similar strategy as you: throw a little each month and add half of all her monetary gifts. The other half is for her piggybank (she is only 4).
Posted on 10/8/15 at 2:06 pm to ThatsAFactJack
I use Raymond James myself.
Posted on 10/8/15 at 7:47 pm to anc
I have a savings account where we try to put a grand or so a month in .. I need to look into a better interest earning account soon ..
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