Child savings
Hi Terry.
I find your appearances on WGN radio very informative and appreciate your advice. I have a savings account set for my, elementary school age, child (chicken money). I was thinking about placing it into a custodial investment account and hoping to make a greater returns in the market over a CD. We, additionally, have a 529 account that we are contributing to separately and am intending to try to grow their savings. Thoughts? Thank you again for your time and advice.
Terry Says
I think it should ALL go into a 529 account. Money in a custodial account weights 7x as heavily against the family in the financial aid formulas. There is no reason to grow it outside a 529 plan.
