Saving for college - 529 plans vs. Savings Account
By sedel1027
@sedel1027 (17846)
Cupertino, California
March 4, 2007 11:44pm CST
Does anyone have an opinion on this?
When I was growing up my parents just put money away in a saving account, so by the time I was ready to go to college there was enough money to put me through college and then some (this same account also funded Catholic school from Elementary through High School). Now with the different college savings plans, would it be better to go with one of those as opposed to a savings account?
I am torn because I like the idea that the savings account can have money taken out whenever. So if my son decides to go to a private high school the savings account can help pay for that.
1 person likes this
4 responses
@trinidadvelasco (11401)
• Philippines
26 Mar 07
Putting aside money in the bank and thus saving for their future is fine. But the way inflation is catching up with us, we tend to worry a lot more. You can go to the bank and ask for a financial advise on this. The banks have some programs now wherein your money saved will be earning a lot more than keeping them simply as savings. Good luck.
@Sailor (1160)
• United States
24 Mar 07
I would check the various plans and then try to find one that can be used for educational programs. Then you can also find out the interest rate on some of these plans and open up a long term Money Market Account or CD Account, which has high interest. This way you can control the reinvesting of the account and at times when you find higher interest, you can reinvest to the higher interest accounts. Yoou can also find an Annuity Account which pays you dividends. Instead of taking the payment of dividends, you can have the money reinvested along with your deposits. In all you may want to go to your bank and talk to a financial advisor. But my suggestion is to go to the bank, pick up the brochoures and then come back after you have read the brochoures and know what questions you want to ask.
