Tuesday, January 22, 2008

Start Saving for College at Birth

Do you have a college savings for your child? I don't mean your personal savings or 401K that you can dip into whenever there is an emergency. I'm talking about a 529 plan or a Coverdell ESA. Before my daughter was born this was on my mind quite often. As soon as I got her social security card, I filled out the paperwork and put it on automatic draft. I've noticed that I rarely miss those draft payments since I never see the money in my hand. Since it was so easy for me to set up, I mentioned the savings plans to several friends and family members. Oddly people do not seem very interested in doing this. I guess they feel the money will magically appear when their child turns 18. I'm sure that scholarships will still be around and the loan sharks will still be in business. However not every child takes tests well and starting life with a big debt over your head is no fun. Regardless of what anyone else is doing, my precious Patty is going to have a headstart in life even if she doesn't have a clue about the process.

1 comment:

Unknown said...

I'm glad to know that Patty has a bright future for education ahead. Yes, it's kind of odd that people aren't interested with these saving-for-college-plans. Isn't a prepaid college awesome? Parents won't be scratching their heads as the college years near and tuitions continue to increase.

Bobbi Burtch