Best way to save for college?

I'm not talking about putting over 100k in the 529 and funding 4 years of college (as of now). I was just looking for something to start and get the ball rolling. Even a grand or 2 a year would be a great start to an education, add in the kid getting a job and hopefully some scholarships and I think thats a very good start (more than I had and most I know).....

Thanks all

No, no and no!!!!!

You want to get as much aid as possible, play the system. When the time comes you will have to fill out the FAFSA (apply for aid). They keep the formulas very hard to figure out but it is close to this: Each aid year they will take 25% of the students money assets and say that is the students contribution for this year. They will take 5-10 % of the two (or more if there is a remarriage, yes you read that right) parents and this is the parents contribution. Those two numbers together are the EFC, expected family contribution.

My advice would be, no 529, no money in the childs name. All hidden. The money can be put away but not in the childs college fund. I knew all this and had 3 kids. I used custodial accounts, all money saved was put in the youngest kids name (for tax reasons) and we kept track of of who's was who's on paper and you can have multiple accounts.. Just so you know they only go back one year on cash assets. Then when the youngest was more than one year out from college, it was transfered to the oldest who was out of college, we had 3 kids, 6 year spread.

All 3 of my kids went to state schools, not planned, just how it worked out for various reasons. Tuition, room and board would have been an average of 100k each for 4 years. Their total nut ranged from 16k-20k in loans and our total nut for 3 was about 20 k.

Do the math and my kids recieved 300k worth of education for less than 80k. Good luck, I hope this helps!

When I say 100k each, that was total. Average 25k per year. 300k for all 3.

Interesting. How do the custodial accounts work? Do you just go through your bank or an advisor?

Thanks for the response, I appreciate it.

The money is in the youngest childs name with a parents name as a custodian. Any taxes are incurred by the non working child which means zero unless they have more than 8k of income.

Can be a brokerage, savings or any financial account.

When the oldest graduated from college, the money was flipped to them and we paid the small amount of tax due.

Ive been reading up on the 529, and it isnt considered the childs money for financial aid purposes. Also, there is a tax writeoff for putting money in a 529. I'm really dont know where the hypothetical break even point would be. 18 years of tax writeoffs would save money upfront, which I like as opposed to financial aid that may or may not happen.....

I may have more than 1 account, but havent found a real disadvantage to having the 529. Thoughts?

Thanks again for the replies.

Rattled?