- 7 years ago
- Wedding: August 2010
My husband and I have 5 nieces and nephews between us. Ever since my first niece was born -over 7 years ago!- we have talked on and off about setting up a college fund of sorts for each of them. And of course for our future children as well. I’ve looked into them briefly on and off over the last couple years and it’s something I’ve kept putting off. But they are getting older as we speak and we hope to put something in place soon.
I am NOT knowledgeable about any financial stuff, at all. Bonds, stocks, etc etc are so over my head.
Basically what we are hoping to do is set up some kind of account, be it a bond, savings account, etc in which we can routinely deposit money into it. Say like a small start up sum then on birthdays, Christmases, Chinese new year etc we’ll throw another couple bucks in there each time. The hope is for minimal maintenance on our part for a growth. I realize it won’t be a big growth. But some kind of growth would be nice.
We thought about just getting something that’s a one time deal and putting it in their parents name that then transfers to their name when they turn 18. But I think since we plan to routinely deposit into it it will be easier to keep it in our name. Since there won’t be a ton of cash in it I doubt it would adversely affect us in terms of income tax or anything, right?
We’re not expecting to be able to give them enough money to pay for even a quarter of their tuition or anything like that! But perhaps something to help out with the textbooks, living expenses or even just to be able to go out to a movie with friends now and then!
The plan now is to present them with this gift perhaps when they start college. Or maybe take the amount and divide it into 4 and give them a 1/4 of the sum at the start of each undergraduate school year. If they don’t want to go to college then when they turn 22!
They are 7.5, 7.5, 4.5, 3.5 and 1.5 years old if that makes a difference.
Any thoughts and input would be greatly appreciated! Thanks!