From the category archives:

Kids/College Planning

When it comes to saving money for your child, you have several options to choose from.   Depending on what you are trying to accomplish will help you decide what option is the best for you.

  • Do you want it to be solely used for college?
  • Do you want the child to assume right to the money then they reach 18?
  • Do you want tax deferral?

For parents that college isn’t the primary focus and they don’t mind if the kids gets control of the the money when they become a legal adult, then you may want to consider opening a custodial account under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). With these accounts, you appoint a custodian, which is typically the parent.  Once the child reaches “age of majority”, then it’s legally their money and they get to do with it what ever they please.

Custodial Accounts For Minors: UGMA and UTMA

Saving Money for Your Kids

Establishing UGMA and UTMA accounts means designating specific investments for a child’s benefit. By doing so, you may be able to reduce your estate and the taxes you owe on your investment earnings or capital gains. But these accounts also have certain drawbacks.
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Six Tips to Help Get Your Children Involved in College Planning

January 4, 2010 Kids/College Planning
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Is your family looking forward to a school vacation coming this summer? Consider getting a head start on college planning. There are many activities that you can undertake now to ease the college decision-making process later.

photo credit: ucentralarkansas

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How Can a Grandparent Help Finance a Grandchild’s Education

December 27, 2009 Kids/College Planning
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When considering potential gifts for grandchildren, you may want to remember the gift of financing an education. Just because Christmas is over doesn’t mean it’s too late to give. Given that a college education represents a significant expense for many families, your gift may be especially welcome when it comes time to pay tuition bills.

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New Ways to Save on Back To School Essentials

October 24, 2009 Kids/College Planning
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College saving funds can now be used for computer-related equipment
Back-to-school shopping is on everyone’s mind, and with current economic conditions, families are looking for any breaks they can get this season.
New this year, parents and students have the opportunity to tap into tax-free withdrawals from their 529 college savings funds to purchase computer-related equipment. [...]

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4 Ways to Save For Your Kids College Education

September 17, 2009 Kids/College Planning
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It’s always nice to have choices when it comes to making important decisions in your life.  Sometimes though, having a plethora of choices can be overwhelming.  Working with clients when it comes to planning for their kids college education is a perfect example.   The are many ways that you can save for your kids college [...]

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529 College Savings Plan Options For Illinois

May 29, 2009 Kids/College Planning
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As our son rapidly approaches the age of two, the scary reality that paying for college tuition is just around the corner.  We were fortunate enough to start a 529 College Saving plan for him when he was born and make a diligent effort to add to it on a frequent basis.   For those that [...]

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Credit Crisis Hits the College Campus

April 13, 2009 Kids/College Planning

The credit crisis that began with the collapse of the sub-prime mortgage market in 2007 has sent reverberations through U.S. financial markets. And, as many students and their parents know, the college loan market has not been immune to the effects.
Market turmoil has made many private lenders reluctant or unable to finance student loans. For [...]

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10 Questions About College Savings Plans

March 30, 2009 Kids/College Planning

If you’re like most Americans with school-age children or grandchildren, you may be wondering how you can ever save enough money to send them to college. Every year you hear that college costs are rising more than inflation and that, 18 years from now, it will cost a lot more to send your child to [...]

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29 Good Reads About Kids And Money

March 13, 2009 Kids/College Planning

Earlier I shared my two cents on teaching your kids the value of money management.  Since my son is only 19 months (pictured above), I don’t have much “real world” experience on teaching him the fundamentals of managing money.  Sure, he can stick coins in his piggy bank all day long (actually a good tool [...]

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Teaching Kids The Value of Money Management

March 12, 2009 Financial Planning

As my son just turned 18 months, he’s still a little too young to understand and appreciate the value of money.  But it’s still on my mind about how I’m going to teach him to appreciate and value the importance of money and money saving tips as he gets older.  While I’m sure that things [...]

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Reader Question #4- Can I Take a Tax Loss on My Kids 529 Plans?

January 12, 2009 Kids/College Planning

Q: I’ve been saving for my two kids college education by using our state plans 529 College Savings Plan.  We were positive for the first several years; but after last year, we are now under water.  Can I take a loss for the year on our college savings plan?
A: 2008 will go down as one [...]

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Our Son Just Turned One, Starting College Tomorrow

August 6, 2008 Financial Planning

Recently, I just celebrated my son’s 1st birthday party. Like any new parent I am still wondering where the first year went. Although I do not remember my first birthday celebration, I can be confident that the gifts my son received far surpassed my gifts for my first couple of birthdays (this is where I [...]

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