Episode•November 22, 2022•8 min

Tiffany's Take: How Do I Save for Children's Education? | Ep. 170

Every Tuesday, Tiffany answers one of your submitted questions. To submit a question for an upcoming episode, visit here: https://www.moneytalkwitht.com/asktiffany. Utah Educational Savings Plan: https://my529.org/ Connect with Tiffany on Social Media Facebook: Money Talk With Tiff Twitter: @moneytalkwitht Instagram: @moneytalkwitht LinkedIn: Tiffany Grant This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
Use 529 plans as the primary vehicle for saving for children's education
Tax advantages vary by state; North Carolina offers none, so Tiffany selected Utah's my529.org plan for its investment options
Age-based investment options automatically shift from aggressive to conservative as the child approaches college age
Funds can be reassigned to another beneficiary (siblings, self, or others) if the original child doesn't attend college
2
Start early and automate contributions from gifts and regular savings
Tiffany opened 529 accounts for both children after reviewing her financial plan and realizing college costs would derail retirement goals
Birthday and holiday monetary gifts are split: save some, spend some, give some away
Family and friends can contribute directly via a shareable link without involving the account owner
3
Don't pressure children into college; the 529 is flexible
If a child opts out of college, the beneficiary can be changed to another family member or even used for the parent's own education
Money is never locked to one person; reassignment keeps the funds usable for qualified education expenses
4
Leverage existing podcast episodes for deeper college-planning strategies
Debt-Free College Planning with Shelly Howard covers scholarships and early planning
Paying for College with Dr. Andrea Johnson provides additional funding insights
Saving for Your Kids with Sarah Holden dives deeper into 529 mechanics

Intro

In this Tiffany's Take episode, Tiffany answers a listener question on saving for children's education, recommending 529 plans and directing listeners to prior in-depth episodes.
Tiffany Grant is a financial coach and host of the Money Talk with Tiff podcast.

Facebook Twitter Instagram LinkedIn Submit a Question

– Listener Question & Episode Context

Tiffany introduces the question: "How do I save for my children's education?" and points listeners to prior episodes for deeper dives.

I've actually done quite a few episodes... at least three where we're talking about college savings.

– Recommended Prior Episodes

Planning scholarships and funding while kids are in middle school

Focuses on 529 plans

– Why Tiffany Chose a 529 Plan

Tiffany opened 529 accounts for each child after her financial plan showed college costs would leave her with zero dollars at death. North Carolina offers no state tax deduction, so she researched and selected Utah's my529.org plan for its investment choices.

I went and looked for the best 529 plan from any state and actually went with Utah.

– How the Utah 529 Works for Her Family

Gifts are split three ways (save, spend, give). Saved portions go into age-based target-date funds that automatically become more conservative as kids near college. Her 13-year-old's account is already shifting; her 8-year-old's remains more aggressive.

Every time my kids get money... we save a little bit, we spend a little bit, and we give away a little bit.

– Flexibility If Kids Skip College

Beneficiary can be changed to a sibling, the parent, or even extended family. Funds can also be used for the account owner's own education (e.g., PhD).

If my oldest son says, I don't want to go to college, I'm just going to move that money over to my youngest son.

– Easy Gifting from Family & Friends

Utah's plan lets Tiffany send a link so relatives can contribute directly, removing her as a middleman.

Resources

Topics

529 planscollege savingseducation fundingtax-advantaged accountsfinancial planningparenting & moneyinvestment accountsbeneficiary changesUtah my529Tiffany's Take