My son will be heading to college in the fall. I always thought we were being responsible parents by opening a college fund for each of our children. Well....we just found out that this money will hurt my son in getting state aid for college. Not only his college money that he has, but our other kids college money too.
The reason is because the money is in my husbands name along with our kids names.

So one word of advice...if you are starting a college fund for your kids, do it in their grandparents name. This way it doesn't come back to hurt you.

Yes, I am all for helping people in need to get education, but at the same time, I think if a student works hard in school, the student ought to be able to get financial aid. Kinda ridiculous how being responsible and saving money actually turns around and bites you.

That's a really good tip. I love learning little tricks like this. I'm going to tell all my friends who have kids Thanks for the tip!! That's very smart

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-Brittany Brydahl

This may sound very old-fashioned and backward, but it's always safe...unless your house burns down: keeping your money under your mattress. If you want to save money for your child's education, maybe you shouldn't entrust it to a formal fund. Maybe you'd be better off with a 529?

Yeah, there's something good to be said for a safe bolted to the into the foundation of the house, hidden in the closet, and filled with cash the government doesn't know about.

I've always favored that idea. I blame it on my distrust for the banks. About the 529, though, I think that may be tax-free or something like that. Maybe you should talk to someone at your bank.

Isn't the 529 tax free until you use it? Anyways, it is still money that you have, so you have to claim it in your assets. In return it is hurting the amount of financial aid the student will receive.