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College Money Question

post #1 of 6
Thread Starter 

For members with kids in college, or will be in college soon, I have a question.

 

If you have a certain amount of $$ deposited into an earmarked account say monthly, quarterly, no matter -  if savings, specific 529, mutual fund, whatever, When do you stop the contributions?

 

For example, I'm trying to decide on if we are going to keep contributing While ds is going to college.  We pay a specific amount each paycheck right now.  I'm trying to decide if we are going to keep doing it while he's getting his undergrad or, when he starts going to University - whatever we have saved at that time, and whatever he is bringing in - is it.

 

How do you work it, without going into personal specifics, of course.  Do the 'contributions' cease when they graduate hs, and then you pay from that amount, or do you just keep contributing until they have graduated (not masters, just bachelor's I guess).

 

Thanks for any and all info.  I'm trying to plan.  Originally I thought of just keeping the same amount until he is done with college, but wasn't sure if that's what others do or when you've graduated HS, what you have saved for them, is it (minus of course all the other million expenses).  I'm just talking tuition, books, and school expenses.

post #2 of 6
I would think it would depend on how much you already have saved, and how much his college costs. If it looks like you're going to have enough, then I'd stop.
post #3 of 6
Quote:
Originally Posted by aliadam View Post

I would think it would depend on how much you already have saved, and how much his college costs. If it looks like you're going to have enough, then I'd stop.

 

I agree.  We didn't set up a college fund--just put it in a regular savings earmarked for college.  Since you only have one child right now, I would figure out the expected cost of attending college for those four years and when I reached it, I would stop.  If you don't reach it, then you could continue saving in that fund or earmark it into a different savings that doesn't have to be used for higher education.  

post #4 of 6

What we did, and our kids are still VERY young, was put a set amount aside at birth.  We add a little for birthdays or whatever, but the bulk of it is already there.  So, to answer your question, we probably won't be contributing much as they get older.

post #5 of 6

I am not there yet, but I think I will stop contributing to a fund once they graduate high school and start giving that monthly money to them for their bills or paying that money to the college directly. 

post #6 of 6

Our plan is to convert the amount we contribute now to pay toward college expenses, conserving the money in the savings account (making it stretch). That way if DD goes to graduate school there MIGHT be a bulk of money we can give her (or use for another purpose). In short, we're planning on cash-flowing college and dipping into savings only to help make ends meet.

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