My husband and I get paid about 5 times a month so one of those goes directly to baby’s college fund.
We actually have three things happening.. A monthly deposit that goes in per child. And we actually have rental property that we can take a loan out when the time comes if that's what they want to do. And when they are five, they get to pick what stock they want to put in their birthday money in.
We do this because it's more then just college it's for their future.
Neither myself or my husband had college funds. We had to take out student loans and pay for our own educations, so we're gonna have our kids do the same. Yeah student loans suck but it teaches responsibility and then we don't lose money if they drop out or don't use their degree.
I know we offer this at cefcu (where i work) and alot of people do 529 i havent started one yet though.
What happens if they don’t go to college but they have the 529 plan??
Not an expert but my understanding is that it can be used for other education purposes, like private school or vocational school. You can also transfer it to another child. If you can't do any of that, there are penalties and taxes, but you don't just lose it all. May vary by state.
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