Today’s article is titled Spending a school fund on CNNMoney.com. It brings to question a subject that many of us either don’t think will ever happen, or, at least we hope it won’t! The question? What happens when your child decides not to go to college, and you’ve saved lots of money in an ESA, 529 or other savings account for them to use on that schooling? Worse, what happens when you have 2 children, and 1 of them used the college fund, and the other decides against school and says you should just give them the money? I bet you can guess my answer!
If the child decides not to go to school, there will be penalties in an ESA or 529 account that isn’t used for schooling, so you can just kiss some of that money goodbye. Now, this isn’t a totally terrible thing, since had you not saved it for education, the money would’ve been taxed anyway, but I’m sure it will still sting a little. I don’t have a huge problem with a child that decides not to go to school, financially anyway, because it’s not impacting your budget, only (possibly) their future.
My problem, as I’m sure our regular readers know, is with the child who asks for (demands?) the money you saved for their education, to be paid out to them in cash, since you paid for their siblings education. In spite of what your child seems to think, your money is NOT their money. I know that you want to be fair with your 2 children, but this money was set aside for their education, not for their amusement. It’s your money, and if the child decides not to go to school, it should STAY your money! Like the article says, if the child wants money, tell them to get a job!
