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Questions tagged [education-savings]

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32
votes
6answers
4k views

Strategies for putting away money for a child's future (college, etc.)?

So my wife and I will be having our first child at the end of the year, and I'm trying to devise a strategy for things like putting money away for the little person now, while I have the time and ...
18
votes
6answers
4k views

What are things to think about when paying for/taking out a loan for graduate school? [closed]

I haven't seen a lot of posts related to graduate school in this SX, but I apologize if there are. I bolded the crux of my question. I'll apply my situation to this question as an example: I got a ...
12
votes
1answer
4k views

Does it make sense to “save” for college by paying off my mortgage?

Assumptions (using round numbers): Two children start college in 12 and 15 years. Currently saving $400/month in a college savings fund earning ~2%. (Some in a taxable account, some in a Coverdell.) $...
11
votes
2answers
4k views

Do I need to start a 529 plan for each child (2 separate plans), or can I just open one 529 plan and let both children use it?

I am looking at starting 529 plans for my kids. My question is whether I need to start one for each of them (2 separate plans), or can I just open 1 and both of them can use it? I would assume the ...
10
votes
1answer
207 views

Investment fund for your child's education?

I have two young children that I am hoping will follow in my footsteps and choose to go to college some day. How do I go about setting up some type of an investment fund for them? I've heard there are ...
9
votes
4answers
3k views

How much is university projected to cost in Canada in 18 years?

I don't know how much I should put into an RESP for my son. I have $1000 to start and plan to put $100 / month into it. Will this be enough to pay for university when he turns 18?
8
votes
2answers
264 views

How much is college / university projected to cost in the U.S. in 18 years?

[Moderator note: A similar question was recently asked with respect to Canada. This is an important enough question warranting treatment for the U.S. as well.] How much is college / university ...
8
votes
2answers
283 views

How should I go about investing/saving for my children's college education?

I have 2 kids (10 and 6) and I was thinking about putting money away for them (for college, for instance). I've looked at various options and the more I look, the more I am confused with the array of ...
8
votes
1answer
2k views

What are the best options for an RESP for my 2 year old kid?

Just starting to look into RESPs for my kid. There are RESP funds, or I could just throw money in a GIC... wondering where else I should look... and what I can do.
8
votes
3answers
342 views

What is the best approach to save money for College for three kids?

I have three kids ages 4, 3 and 0 and I am concerned about the cost of college education for my daughters. A lot of the "public" schools (not community colleges) cost between $20,000 to $24,000 a year ...
7
votes
2answers
391 views

Can I start a 529 plan for a child before the child is born?

A recent question got me wondering about this one: Conventional wisdom says "It's never too early to start saving for your kid's college education." But a 529 plan is taken out for a specific person. ...
6
votes
3answers
3k views

Saving for niece's education: Roth vs 529 vs something else?

I am considering starting an account to help fund my girlfriend's niece's education. I am looking at contributing a small amount each month. I would also like to maintain control of the money and be ...
6
votes
2answers
460 views

Is there any tax-deductible way to help fund my siblings' education?

My brother is in college and my sister is attending a private high school. I would like to help my parents pay for their education. Is there any way to do this that would be tax-deductible?
6
votes
1answer
7k views

RESP withdrawals: What are the eligible/qualified education costs or expenses, other than tuition?

A few years ago, my wife and I started an RESP to help us save for my daughter's eventual post-secondary education. We're doing well with it: we take advantage of the maximum government match, and ...
6
votes
2answers
303 views

How can a 529 plan help me save for my child's college education?

How can a 529 plan help me save for my kid's college education? Who offers 529 plans? Are there any special restrictions or conditions on these plans that I should know about?
6
votes
1answer
419 views

Can I get a tax deduction for giving towards my grandchildren's education?

I have 4 Canadian grandchildren. Can I get a charitable tax deduction if I give towards their education?
6
votes
1answer
178 views

Grandparent funding grandchild's K-12 education and receiving Arizona tax deduction

I want to help pay for my granddaughter's preschool and primary education expenses and would like to get a deduction on my Arizona state taxes in the process. Arizona offers a state tax deduction for ...
5
votes
4answers
340 views

What are some ways to save for a child's education?

My brother just asked me this question: he currently has a son that is three years old. What are some ways to save for his son's education? What are the pros and cons of each way? How much should ...
5
votes
4answers
770 views

Should I save for a down payment or pay off school in cash?

I am able to save about $1000/month after all bills. I can either save this money for a down payment on a house, or pay for my (rather expensive) grad school program in cash and incur no additional ...
5
votes
2answers
128 views

In state 529 plan, out of state college?

Do you have to open a 529 plan for the state that you live in? and if you do, can your child go to college in any state and still use the money saved?
5
votes
1answer
162 views

Am I better off with NY's 529 plan? (Maryland resident)

Maryland resident here. We'll be opening some 529 plans for our kids (ages 4.5, 2.5, and 1), and I'm wondering how to determine if we're better off with the in-state plan or another state's plan. We'...
5
votes
1answer
1k views

Can my sister open a Coverdell ESA for my son?

My son is, naturally, claimed as a dependent on my tax returns. My question is: Can my sister open a Coverdell Education Savings Account (an education IRA) for my son (her nephew)? I am aware that ...
5
votes
1answer
150 views

Can your kids take over your 529 plan and use it for their own kids?

Consider the following situation: There is money remaining in your 529 plan after your children have finished college. Your children now have children of their own. Can you change the beneficiary of ...
5
votes
1answer
91 views

State tax deduction of 529 account deposits?

My state (Massachusetts) will offer a tax deduction next year for up to $2000 in deposits to a 529 college savings account. I have a credit card which offers 2% cash back. The choices were to have ...
5
votes
1answer
5k views

Can I convert my 529 college savings plan to a Coverdell ESA?

Can I convert my 529 college savings plan to a Coverdell ESA, or am I stuck with my 529 plan?
5
votes
1answer
127 views

529 plan strategy for contributions and withdrawals?

I have a child who is a college-bound high school senior. We live in a high tax state that offers a tax deduction on contributions of up to $10K per year to the state's 529 plan. At this time we ...
4
votes
2answers
723 views

What are the rules on overfunding a 529 college savings account?

I read somewhere that overfunding a 529 account could be subject to taxes and a 10% penalty. Does anyone know how this works? Obviously, it is very difficult to predict the tuition costs 10 or 15 ...
4
votes
1answer
73 views

Educational Savings Program vs. Individual Investment Plan

I am trying to figure out what is the best investment option for my daughter's college tuition when she turns 18. We currently have Michigan's education savings program (MESP 529) and we deposit $100 ...
4
votes
2answers
219 views

Will having savings and investments count against my kids' college financial aid?

I have a fairly modest income (closer to the poverty line than median income), but because we live abroad, we're able to live comfortably and save responsibly. We max out our IRA contributions every ...
4
votes
1answer
299 views

Tax advantages of using 529 plans to save for child's education?

I have been looking into 529 plans for my son, and my primary banking and financial institution offers a 529, but their 529 is not as high performing as some other likes Vanguard, T Rowe, or State ...
4
votes
1answer
143 views

What should I consider when opening a 529 for someone who is not my dependent?

I have some money languishing in a CD. I rigged the baby pool when my "nephew" [best friends son] was born and set my ill gotten gains aside for his education. I would like to open a 529 for him. I ...
3
votes
2answers
406 views

Do banks offer any Savings Account or Savings fund for specific reasons?

I am saving Money for Grad School Prep and Marriage which is there in my Savings Account. I was thinking of opening new bank savings account for certain purposes and schedule automate deposit to those ...
3
votes
1answer
762 views

Is an RESP the best investment option for my young child?

I recently had a baby and am thinking about opening an RESP to save for his education. Is this the best way to invest my money? Is there a chance of losing money this way?
3
votes
1answer
1k views

How much money should a “fully-funded” 529 account contain to pay for a student's education?

What is the maximum, reasonable amount one might put into a 529 college savings account for the benefit of a single future student? 529 accounts have maximum allowed balances between $235k and $400k ...
3
votes
1answer
203 views

I want a long term savings account for my daughter. How should I proceed?

I have researched some into Certificate of deposit and was wondering if this is a good approach. From this site http://www.bankrate.com/cd.aspx with the following criteria of Ca, Los Angeles and 5 ...
2
votes
2answers
185 views

College Savings: Using available IRA vs establishing a 529 plan?

A financial adviser has recommended to me using my IRA to save for my son's college with the following notion in mind: 529 plans must be used for education, therefore if he doesn't want to attend* or ...
2
votes
2answers
491 views

Group (pooled) RESP plans in Canada: Education savings advantages & disadvantages?

I'm familiar with the Individual and Family types of Registered Education Savings Plans (RESPs). There's also a third type: Group (pooled) RESPs, which I mentioned in this answer. I didn't provide ...
2
votes
1answer
256 views

what are the benefits of setting up an education trust fund for children?

I am thinking of setting up a trust fund for my children. I am wondering if there are any differences between setting up a saving account and a trust fund? Update, I am in New Zealand.
2
votes
1answer
51 views

Pay off loan with MESP 529?

I made a bad decision and took a 401k loan last year. I question whether I could pay off the loan with a 529 account I have through Michigan education savings plan. I would not be pulling any money ...
2
votes
1answer
174 views

Entire Coverdell ESA accidentally disbursed, need to spend part and redeposit

My 18 year old daughter will be entering a university and community college simultaneously. I had a Coverdell ESA that I wanted to use for tuition, room & board, and a computer for her. I went to ...
2
votes
2answers
332 views

College funds - is it too late to open a 529?

We are immigrated parents and our daughter will be going to college in 3 years. What's the best option if we want to start saving for her college education? I would like to have an account with high ...
2
votes
2answers
74 views

Are non-qualified withdrawals from a 529 plan penalized on the original contributions?

My understanding is that early (nonqualified) withdrawals from a 529 plan are penalized at 10%, plus taxed over any capital gains. Does the 10% penalty apply to capital/investment gains only, or to ...
1
vote
2answers
302 views

Is a technical Masters degree in a high-paying employable field worth it? [closed]

I give as a follow-up to my first question, a more reality-driven premise and question. I ask: Is a Masters degree in a high-paying employable field worth it? Say you need 4 pre-Masters (aka post-...
1
vote
1answer
51 views

Is money in a UTMA considered when a student applies for financial aid?

If a student is applying to college and requesting student aid, but has a substantial amount of money in a UTMA account, can that negatively affect their chances to receive financial aid? If so, is ...
1
vote
2answers
334 views

I inherited cash and am deciding whether to save, pay off debt or invest

I have $30,000 I recently inherited and am trying to figure out the smart thing to do with it - pay down mortgage, pay off a HELOC, save for education (2 kids who will be starting college in 1 and 3 ...
0
votes
2answers
146 views

Does it make economic sense to get a cheaper online degree rather than a traditional college degree? [closed]

We have been taught since young that education is sacred and that a college degree is a passport to a good future in life. However, today's traditional college cost is really very high and there comes ...
0
votes
4answers
176 views

Ways to save for child's college education where one need not commit to set contributions? [duplicate]

I'm looking for a good way to save for college for my daughter. As a parent of a single income home, I am looking for a way to maximize my savings to reach my goals, but without having to go with a ...
0
votes
1answer
58 views

Will one’s education loan application be rejected if one doesn't have a payslip providing collateral?

Is it possible to reject education loan by SBI/IOB for abroad if don’t have payslip where parents are doing small business but provided necessary collateral which is worth twice the value approved by ...
-1
votes
1answer
47 views

How to smartly enter information of the CSS Profile and IDAC form?

All need-based financial aid colleges in the USA require filling out the CSS Profile and IDOC Form to determine financial need. Hence it is in the student and his family's interest to show their ...