Ask Terry Questions money for my grandkids

money for my grandkids

By Terry Savage on March 15, 2024 | College Savings / Student Loans

I put away money from every paycheck for my 3 grandkids. It is not much but i would like to put some of the money I have for them into something that might earn more than just the regular saving account it sits in. I am not interested in the education savings because not sure if any will go to college and don’t want the money tied up there. So other ideas??

thanks much enjoy listening to you on WGN Wednesdays

Terry Says

Well, if you open a 529 college savings account, you can make the money grow more aggressively. And if they don’t use it for college, but instead get a job, they can use the account money to put into a Roth IRA after the account has been open for at last 15 years! It will give them a head start on retirement savings!

So, assuming you live in Illinois, you would go to to open that 529 account — and get a tax deduction on your Illinois taxes for your contribution.
The problem with investing for kids is that when they turn 18 the money is theirs! And if they do decide to go to college, money in custodial accounts weighs 7x more heavily against the family in the financial aid formula.



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