BEST WAYS TO SAVE FOR A YOUNG CHILD
Hey Terry!
I was wondering if you could give me some advice on the best ways to save money for my daughter. She is a year and a half old and just has a piggy bank right now. We would like to set up an account with money ($50 a month or so) to be deposited into the account for when she’s older. We have looked at 529 college saving plans, however, we aren’t too keen on putting our money into something that would assume our daughter would go to college when she turns 18. Any advice or ideas would be greatly appreciated!
Thanks,
Terry Says
Well, let me ask you about your assumption. Why would you presume that your daughter wouldn’t be going to college? She might want a career. Or simple to do what her friends are doing. Most future opportunities will be built on a college education. If you start saving now in a 529 college savings plan, the money grows tax-free for use in ANY COLLEGE IN ANY STATE!
That’s a great deal — and there is no better tradeoff! And if you have another child, the money can be used for either sibling.
So I’m sticking with a recommendation for a 529 plan. If you live in Illinois, use the BrightStart plan. If you want to learn more about how these plans work, go to www.SavingforCollege.com.
