college savings

posted 2 weeks ago in Finances
Post # 2
Member
149 posts
Blushing bee
  • Wedding: November 2020 - North Carolina

How much older is your oldest? I would split new college fund contributions 50/50 between both accounts so that  They both continue to grow but the older child will be attending college first so hers needs to be ready sooner. Once they are both in school you have allocate the contributions differently if need be.

Post # 4
Member
149 posts
Blushing bee
  • Wedding: November 2020 - North Carolina

LilliV :  My pockets are hurting on your behalf lol I’m kind of in the same boat (1yo, 5yo, 7yo) and we’re doing it how I said. We’ll figure it out as we get further along.

Post # 5
Member
5720 posts
Bee Keeper
  • Wedding: July 2018

I personally would just save in one account then split it closer to h the time. I don’t think it’s fair for either to have a “head start” just based on starting to save earlier for one but not the other. 

Post # 7
Member
9222 posts
Buzzing Beekeeper

I’d just split it for now and even them out later 🤷‍♀️

ETA: Actually, I think I’d only contribute to baby #2’s at first until they’re even and then split 50/50 from then on.

  • This reply was modified 1 week, 5 days ago by  Grid.
Post # 8
Member
9734 posts
Buzzing Beekeeper
  • Wedding: August 2016

I’d make it even however you need to do that. Your daughter doesn’t deserve more because she was born first. I’d contribute to baby #2’s savings until they are even and then contribute equally to each from that point forward.

Post # 9
Member
3383 posts
Sugar bee

I would only contribute to the second child’s account until you have contributed equally, then I would split 50/50.

Post # 10
Member
149 posts
Blushing bee
  • Wedding: November 2020 - North Carolina

I’m not saying she deserves more just because she’s born first. I was saying that because she’s most likely going to college first she will need to have more money sooner.  But I was thinking that the kids were more spaced out in age. I’ve been saving the equivalent of $5 a day for my son since he turned 2. I plan on doing the same for my daughter when she turns 2. I’m not going to immediately match the amount of money in their accounts just to “make it fair”. When she turns 17 she’ll have the same amount in her account as he did when he was 17. 

Post # 11
Member
149 posts
Blushing bee
  • Wedding: November 2020 - North Carolina

 But because OP says she can’t double up on what she saves per month right now she can split new contributions 50/50 so that both accounts are still growing. Once the kids are in school then she’ll have more opportunity to make more money and she can catch up and even it out more if she wants.

Post # 12
Member
14965 posts
Honey Beekeeper
  • Wedding: June 2011

Is it a 529 account?  Does it really matter what moneys is earmarked for who?  You can always change beneficiaries as needed and even things out later to keep it “fair”?  Or maybe one kid needs more than the other and you’ll be redistrubting anywyas.  For us if/when we have a second, we’ll make some attempt to keep it ‘even’, but our main concern would just be the over all best tax advantages and then worry about how to distrbute funds later.

Post # 14
Member
539 posts
Busy bee
  • Wedding: June 2018

Take this with a grain of salt as it is absolutely just me spouting off an idea. 

What about temporarily lowering (if not completely halt) the amount you are putting into Daughter #1’s account, and focus on putting those said funds (and/or extra of course if you wish and are able) into Daughter #2s account until they are both at equal amounts and THEN begin to contribute 50/50? 

Obviously Daughter #1 will hit college sooner than Daughter #2 therefore she will need the money sooner, but idk… just an idea assuming it won’t be too difficult to get Daughter #2’s account up to the same amount as Daughter #1. Then, once they each get to their respective college years, they each have equal amounts for funding. If that makes sense? 

I don’t have kids BUT my family wasn’t the least bit concerned with helping me pay for college so Darling Husband and I have already begun thinking about this for our future kids too. 

ETA: I’m also not a big finances girl, I don’t get big into it other than like super easy Dave Ramsey principals. 

 

Post # 15
Member
563 posts
Busy bee

I think you are thinking too much about it. Maximize your tax less savings and keep putting what you can in both accounts. Who knows what’s going to happen in future? Your one daughter might have a scholarship and go to school for free and maybe one of them might not even want to go to college. How the world is changing college education is less and less important. My brother never went to college and has been making a 6 figure salary since he was 20. I on the other hand went to college and grad school and don’t make anywhere close to that. The point is you don’t know what the future holds. Just do your best. If I were you I would just figure out the amount per month I feel contributing and then divide it between the two. 

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