Home > MM(20) Gifted college Fund

MM(20) Gifted college Fund

March 8th, 2024 at 02:41 pm

This is a Part 2 re: my last post.  Realized I should have mentioned this with that post.

I am enjoying actually making interest on our cash. The 'Gifted College Fund' interest covered all of MM's college expenses during his junior year.  

Interest received this school year: $950

Net Tuition Paid (after tax credits): $743

Class supplies purchased separately:  $185

In the end, interest will roughly equal costs this school year.

(I actually skipped a $241 reimbursement, I think in December when I got my work bonus.  So I only deducted $687 from college fund this school year.)

We didn't pull any expenses from the college fund freshman year.  (We didn't intend to, but I think our net cost was $0 that year.)  We pulled out $5,000 to cover Sophomore year expenses (we had less middle class grants & scholarships that year).  $20,000 remains in this college fund.

I expect that MM(20) will have $0 left when he is done with college.  His state grants are probably exhausted (this is still very unclear, but likely those funds will dry up).  & he's added a 5th year, so will be a couple of roughly $10K years of paying full tuition.  He understands that his choice to pay 5 years of rent in a high cost region, this means that he will not have any (gifted) funds left at the end.  Choosing a very affordable State college still has many benefits, like MM(20) not having to work at all.   Or us feeling *shrugs* about the 5th year. 

Note:  I have no plans to touch DL(18)'s gifted college fund, as long as he is living at home and paying roughly $1K per year tuition.  If not used for college, it's his money to do whatever he wants with it. 

4 Responses to “MM(20) Gifted college Fund”

  1. LivingAlmostLarge Says:

    Is the gifted college fund the gifted money in your brokerage? Or something separate? It's surprising how fast it can all add up.

  2. MonkeyMama Says:

    The gift money is all over the place. MM(20) put $5K into a ROTH IRA at some point, and also $1K of gift money he put in I Bonds. The rest ($20K mentioned above) is in our brokerage (cash) because it's earning 5%. But I have some of the kids' money lumped together in a separate brokerage account. It's in our name but it's just the kids' money is separate from our money. I am a little extra careful with it because it was a gift. I don't want it comingled with any of our accounts.

  3. LivingAlmostLarge Says:

    So the gifted money in the brokerage account is not in a 529? So will you just give it to them?

  4. MonkeyMama Says:

    No 529 plans. Yes, will give it to them.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
Will not be published.

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]