Do you feel like money saved for college needs to be used for college only?

[BeachLove]

Would you be open to your kids doing something else with the money?
-Buy a home
-Start a business
-Go to trade school

Or would you only be willing to let your child use it for college? And its not a choice.

 

[BuzznBelle'smom]

It would really depend on the circumstances. If the money is saved in the child's name (like, say, a trust), then it's the child's money when they turn 18 (or 21, depending on the state). As a parent, you can only recommend and encourage.

If it's actually the parents' money, then obviously, they have the say over how it's used. I would say, though, that you have to look at each child's individual strengths and choices. If you have a child who would be better served by becoming a plumber, say, instead of a doctor--that should be supported, IMHO. Trade school and/or seed money to start a business would be appropriate.

I guess I don't see the point in insisting the money be spent on college. if the child isn't college material (it happens!), then that's time and money wasted pursuing a degree that's not really wanted. Better to support that child in other ways--or possibly, not at all.

 

[pocomom]

It would totally depend on the kid and on circumstances but I probably wouldn't give any child of mine a large sum at 18 to do much except further their education, or future earning potential... I absolutely count trade school if it is an appropriate choice for the kid. (ie. I would pay for trade school for a kid who wants to become a contractor because they like a physical job, but not for a kid who didn't put the effort in in college and is falling back on trade school or endless community college classes to get out of working in the real world... I won't pay for lazy I have saved some other money to help the kids get off to a good start. It will depend on the kid when and what they get that for, it may be for grad school, or to start a business, when they start a family, or buy a house. I envision it to be at a time of financial maturity though, probably closer to 25-30. I feel like I was probably solidly in my 30's before I was really there, but I'm hoping my kids are getting enough of a financial education to get there sooner.

 

[purpledisneyprncess]

I personally feel that if you have money saved for your child's college fund yet he/she doesn't end up wanting to go (but has another career goal in mind) I wouldn't have a problem with them using that money to pay for trade school, or to purchase a home or something to that extent. As long as the money went towards something positive for my child & good for him/her in the long run.

I'm a college graduate and while I think it's important to get an education, there are many people out there that have very successful careers without a college degree simply b/c they are "go getters" and I will encourage my children to follow their dreams, so long as it's productive. But even the $ that we have saved for them now, if they want to use it towards a home purchase, that would be acceptable.

 

[disykat]

The money I am trying to have available is for education to help them get launched - trade school is certainly included in that. It's my money, not theirs to have. If I were to choose to help them with something else, it would have nothing to do with being their "college money." It would only be because I had some extra money and wanted to help.

I certainly wouldn't feel obligated to give money to my child if they decided further education wasn't needed. To me, it's no different than if I had saved money for braces and they ended up not needing them. Now that money can be diverted elsewhere. Maybe it would happen to go to something for them or maybe not. It would simply be back in the pot.

I have to admit I was really excited when my sons got some small scholarships because it meant I get to spend less money. In no way did I consider the money I won't have to spend "theirs."

 

[RN01]

We had about $14,000 saved for my daughter's college. She is going to a local community college the first two years and got a scholarship so our out of pocket expense has been very small. She wanted to move out on her own and she has a job to pay for her bills and we agreed to give her $100 a month out of her college money to help with that. She knows once the money is gone she is on her own.

 

[My5Mouseketeers]

I tutor math at our local Community College and I see so many kids that are there because "their parents are making them go". Some kids are NOT college material and some kids just aren't ready for college yet. I don't think that parents should force their kids to go to college, because it is just wasting money.

Having said that, it's MY money. I have saved it. I am planning to use it to help fund PART of their education. If I don't think that it is going to be a good return on investment then I don't have to spend it.

I also don't believe in funding 100% of a kids college education. They need to have a stake in it. Know that they are spending THEIR money not just Mom and Dads. If I had the funds to pay for 100% of each of my kids college; I would give them a check at graduation to pay off their student loads.

 

[crisi]

Depends on what it is - trade school, almost certainly. Finish trade school apprentice and want to use the balance to set up a business, yeah, if the track record supports it.

House, depends - is it to keep them from living in my basement

 

[MrsPete]

I'm with the majority here: I've saved money for my kids to go to college (though I agree that trade school fits into the same general category).

I was very willing to scrimp and save so they can go to college and earn a degree that'll allow them to take care of themselves and their families for the rest of their lives. If they get scholarships, wonderful -- I've got extra money AND I'll do a little more for them in some way.

However, I did not sacrafice so they could have a nice windfall after high school for any other reason. In fact, I think it'd be misleading to gift them a bunch of money for something other than education. It'd allow them to think they could live "on more" than they can earn themselves without that education.

If they didn't go to college right out of high school, I would hang onto the money so it'd be available if they changed their minds later. My husband did that: After high school, he was DONE with education. It only took two years 'til he saw the point and headed to college.

5 Mousekeeteers, I teach those kids in high school, and I know what you're talking about. So many of our kids tell you flat-out that they hate school, they skip whenever they can, they don't do their reading, they take the lowest-level class that'll allow them to graduate . . . but, oh yes! They're going to college! Sometimes it's that their parents insist, sometimes it's just because it seems "expected" of everyone. And so often they choose things that're so unrealistic: A kid who probably could earn an AA declares she's going to be an OB/GYN. A kid who probabably could become a paralegal says she's going to be a lawyer. They don't "see" these realistic goals.

 

[clh2]

Would you be open to your kids doing something else with the money?
-Buy a home
-Start a business
-Go to trade school

Or would you only be willing to let your child use it for college? And its not a choice.

I would absolutely consider any well-thought out plan that our DD had. She is a college freshman right now - and say "if" she ended up with a 4-year full ride, then after she was done with college - then perhaps we would gift her money for a house down payment, or a car. DD didn't get a full ride...so this will not be the case for our DD.

I consider trade/technical school/college to be similar, and consider all to be opportunities for higher education.

I would be hesitant to fund a new business. Not without knowing the details. But - if it supported the trades learned - then perhaps some "start-up" money.

And - the mean mom that I am - if our DD wasn't going to college/trade school, she would not be receiving any of her college funds until perhaps she was 30, and had a stable life started. I do know a family - where one of their children opted to not go to college until he was in his late 20's, and their finances are interesting right now.

Right now - DH and I control the money we have saved for DD's college. THis was great advice from our financial planner. As was mentioned to us - if we retained the control - if was our choice if our DD would get money if she didn't go to college.

 

[Colleen27]

For us, college funds are for higher education. I include trade school in that, and that is the path my oldest will most likely take. We want to give the kids a strong start in life and that, for us, means as little student loan debt as possible.

I might offer my child assistance with a down payment on a home or getting a business off the ground if I felt they were making good choices in doing so, it wouldn't come out of the college savings and it wouldn't be an "instead of" funding college or a "reward" for choosing a less expensive educational path. It would be in addition to, and would be limited by our financial means at the time. And in my mind, the kids' college funds aren't "theirs". If my oldest takes the route he's planning on now (technical HS to a skilled trade program at the community college) and doesn't use every dime we've saved, we're not going to hand him a check. We'll hang on to the "leftovers" because we have two more kids that will head off to college after him and might need the help. That's why I don't put monetary gifts from extended family into college savings - those go into the kids' general savings accounts for them to use for spending/incidentals and for activities that we might not be willing to fund.

 

[OasterP]

I am new to this board because we just started planning for our Disney Vacation, but my husband and I just had this conversation. Our son is 2 1/2 and we are planning to save enough to pay for his college, but we are keeping the money in our name. We plan to give it to him either for college/trade school or for other things when we feel he is responsible enough. It's set up in our will that it will go into a trust should we die until he is 25 (for part) and 30.

 

[Egdisney]

I think college fund is a misnomer. It should be called a higher education fund. I would be happy to assist my child with paying for anything that would help them get a jump start in life. In fact, I would encourage them to learn a trade if they were unsure of what to do. Too many kids wasting time in college, not enough learning to be a plumber. Plumbers make great money! You can put the funds in an IRA and you could take them out for college, if they don't go or get a scholarship you have it for retirement.

 

[3boymthr]

Absolutely it can be used for something else. As I mentioned in the other college thread middle DS will almost definitely be going the trade route so the money saved by his grandparents will probably go for trade school. In addition, I have a relative who elected not to go to college. She did the old fashioned "business" route in HS and became a secretary/admin assistant out of HS. When it became clear that she was not going to college as was successful in the career route she had chosen she was given the money that had been set aside for college to use as a down payment on a house - it enabled her to buy a house at 22.

 

[amylevan]

The money we have saved in their 529s is just that - for higher education (yes to trade school being included in that...) Any that isnt used by the oldest will be added to the younger ones accounts. Any left after that is for DH and I to spend as we see fit.

 

[tvguy]

My kids college money is for college. And if there is any left when they are done, it's mine. But none of our college investments are in 529 plans.

 

[DawnM]

I have two children who need/want to go to college. It has been well discussed.

I have a 3rd child with some rather severe learning disabilities that may end up at a trade/tech school and I am learning to be fine with that.

What we expect is some form of higher education, which will mean whatever they are able to do.

If we have money left over we will decide at that time what to do with it. It will depend on the child's needs and where he is headed. Maybe we could help with grad school, maybe we could help him get reliable transportation.......too many what ifs.

DH's boss says he provided a college education and a car for each child and expected them to get enough from those two things to be able to get a job and provide for themselves.

 

[scrapquitler]

I think college fund is a misnomer. It should be called a higher education fund. I would be happy to assist my child with paying for anything that would help them get a jump start in life. In fact, I would encourage them to learn a trade if they were unsure of what to do. Too many kids wasting time in college, not enough learning to be a plumber. Plumbers make great money! You can put the funds in an IRA and you could take them out for college, if they don't go or get a scholarship you have it for retirement.

Absolutely agree with the bolded. For some (many) kids, trade school is a better option than college, and gives a practical skill oriented training that sometimes can be better for finding a job once completed. I don't know too many unemployed plumbers or electricians, but I know a LOT of unemployed liberal arts majors.

I have one child that will for sure go to college. The other one, I can't imagine him going to college because thats just NOT his thing, but I can defnitely seeing him in a skilled trade, that's just where his aptitude is. I wouldn't spend all the money for college for a child if it didn't seem like an appropriate and worthwhile investment.

Regardless of their choices for higher education, the money I have set aside to pay for that is MY money, not theirs. I will use it for them when the time comes, but it is still MY money and they know that.

 

[StephMK]

I am fine with any type of school or training that will lead them to their career choice. Most of it is in a 529 and if one doesn't use it all, it will get used by another kid. 2 are planning to go past their bachelors already due to career goals.

 

[AJ1983]

Does "college" mean something different in the USA? It seems like people use it as a term to mean university, given what "college" costs ($40,000 a year??WOW!) Here, college programs are essentially the 9 month-2 year program, and the trades are all included.

Also, what is the difference between a public college and a private college? And lastly, why the heck would anyone pay $40,000 for a BA when they can get the same degree at a "public" college for considerably less?? lol