i need to start a college fund for my son who is 10 . i can only put away $ 50 a month .any suggestions .?

Answer 1

Every bit that you can save will help. I do not know much about 529s, but I would say that if you open up a savings account, make sure it is in an online bank, like HSBC or ING. They have interest rates of around 5%, as opposed to the horrible interest rates currently available in “regular” banks.

Also, like the user above said, DO NOT put the money in your son’s name. When it comes time to determining how much a family is able to pay for college, they generally assume that parents can pay 10% or so each year of their savings and that kids can pay 35% of their savings each year. Therefore, if you saved $1000 in your name, the college would expect you to pay $100 of it. However, if the money was in your son’s name, they would expect him to pay $350 of it, making him less eligible for grants.

Answer 2

I would look into starting a 529. Depending on what state you live in, your contributions can be a deduction on your state taxes. Also, when you have a 529, you can choose what you want to invest in, i.e.: mutual funds, stocks, etc. Several of these have a return that is much higher than a savings account. Here's an example of a 529 provider: www.collegeinvest.com. Also, check out www.upromise.com. The retailers that participate will make a contribution to your 529.

Answer 3

Your state may have a college fund program similar to the following: Created by LB 1003 in January 2001, the College Savings Plan of Nebraska consists of 32 investment options ranging from conservative to aggressive funds and portfolios, each of which have been approved by the Nebraska Investment Council. Enrollment in the plan qualifies families and individuals for a $1,000 deduction on their state income tax.

These 529 plans are available for parents AND grandparents!!!

Answer 4

i work for two investors and i can tell you that putting $50 away per month (have the fund company draft it straight out of your bank account so you don't have to wrry about it) given it being in the right funds, will grow to be a pretty good amount of money by the time he is 18.. and you can always put any birthday/christmas/extra money into it..

think of it this way, having something there is better than nothing, try finding an advisor and talk to them about your limits and they'll set you up!

Answer 5

Good idea. Instead of investing the money in a college fund just open a savings account in your son's name and put the $50.00 in. Also, when you get your child tax credit put that amount in your childs savings account. I would suggest do a smaller amount via paycheck direct deposit into his account and you will be shocked to see how much he has accumulated into his savings account. Also, try to put a little something extra during his b-day, x-mas, etc. It just has to be anything from $5-$20.00 a little bit always help and by the time he is ready to get a job at 16 (paper route, etc) he can put away a bit of his money into the savings account you started for him. I know because my my did it for me when I was baby and now I am able to buy my own house because I started putting away a little $$ via my paycheck each time.

Answer 6

If you are going to open a savings account, whatever you do, don't put it in his name. For one thing, if he decides not to go to college, the money is legally his and he can blow it on whatever he wants, and second of all, when it comes to financial aid, the government assumes that the child will spend a much greater portion of their income on college than the parents. Therefore, for every dollar in his name he has, it lowers the amount of free money he'll get.

Answer 7

The best place is to place it in a bank or Google.com, or Yahoo.com your state's college savings plan because they might have smaller minimums than an average mutual fund. However, you might be able to contribute more indirectly through Upromise.com which is done by purchases. I do not recommend placing it in his name because it will count at a higher percentage rate than it would under your name when you complete the FAFSA form for college.

Answer 8

Just start now and put away whatever you can. Even the littlest bit will help. I am looking at going to college very soon and I deeply regret not looking ahead and saving.

Answer 9

i could say approximately $40K to $50K. this could disguise maximum, if not all, of classes fees for an in-state public college and could desire to circulate a protracted thank you to an out-of-state public college. inner maximum schools are notoriously extra high priced, so i will inspire my youngsters to the two stick to like loopy for scholarships or seem into public colleges. it truly is assuming they stay at abode or off-campus; on-campus room and board is typically everywhere from $8K to $15K on properly-known. i could say between $20K and $30K is extra reasonable. Your newborn could be waiting to make up the kind with scholarship awards, monetary help/loans, and occasional value rates from working area-time for the duration of intense college and school.

Answer 10

Join upromise. (link below). You register you & your family memebrs credit/debit/grocery/drug cards & a % of purchases goes into a college account.