How to save for my kid’s future?

Question

Full disclosure, I’m not a mom but one day I might be. I’m in my early 30s and I already feel like I should have started a college fund for my non-existent kid already. Are there any savings tips that you’ve implemented to help with your son/daughters future?

Lady Pele · Answer

Anytime I'm saving for something big, I like the money to be withdrawn from my check so that I never see it.  It's sometimes too easy to use it for something else 'just this once'.   401k, Roth IRA, credit union account, whatever is applicable.

Dave Ramsey has some thoughts here: https://www.daveramsey.com/blog/saving-for-college-is-easier-than-you-think   This include info on ESA's, 529's, and the UTMA/UGMA.

CouragetoBeSeen · Answer

I suggest while you don’t have children save as much as you can for your retirement. That way time will be in your favor and you will maximize compounding. We started a 529 for each off our children when they were born and have an automatic payment to their account every other week. One of my sons has special needs so when they created Able accounts we transitioned him over to that instead of continuing to fund his 529 plan.

Rebecca Lake · Answer

I'm saving for my kids' college in 529 plans. I also have custodial savings accounts set up for them that are their 'getting started' funds, meaning it's money they could use to buy a first car, pay for school expenses that their college funds don't cover, travel, start a business, etc. Automating is a good way to save for that kind of thing without thinking too much about it. Technically, you can't start a 529 until you have a child but you could still save money in CDs, high-yield savings accounts, money markets, etc. right now. Those can earn more interest than a regular savings account. And a great thing about 529s is that anyone can contribute money to them on behalf of the child. So if you have a child (or two, or three or however many) you can contribute money to it for them but so can their grandparents, aunts, uncles, cousins, etc. And any money you withdraw for qualified education expenses is tax-free!

How to save for my kid’s future?

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