I’ve written a lot (a LOT) about found money and giving it jobs to do. And we’ve really used that technique to its fullest when it comes to college savings.
For a number of years now, my blogging/online earnings have been earmarked for my daughter’s college and put into a savings account at Capital One 360 for just that purpose.
And last year I started directing my bookkeeping income into a second savings account for my son’s college. (See: Giving Income Streams New Jobs)
Those accounts hold the savings for each kid until we’re ready to transfer $$ to 529s.
But both kids are both seniors – Lindsey in college and Grant in high school – and things are changing a bit.
First of all, Lindsey’s done an excellent job earning scholarships. (See: How to Earn Scholarships for College: One Student’s Experience) As a result we won’t owe the university any money for her tuition or fees this year. So essentially we’re just paying her a set amount each month for rent and living expenses and we’ve been doing that out of earned income. In other words it’s just a “bill” we pay each month.
That being the case, it doesn’t make sense to keep setting money aside for her in a separate college savings account. So I’ve combined the two college savings accounts back into one.
FYI, opening individual savings accounts from your original savings account at Capital One 360 is so, so easy to do. See that little Add New Savings Account link with the plus in front of it below our list of accounts?
And you can name your different savings accounts anything you want, which is fun and helpful when you’re saving for different goals.
Combining or closing accounts is easy too. To merge our two college funds, I did an online transfer of all of the $$ out of the 2nd College Savings account into the first one, and it asked me if I wanted to keep that 2nd account open for future use, or close it. I closed it since we’re done with that savings goal.
The whole thing took me about 30 seconds.
So from now on, both my blogging/online income and my bookkeeping income will go into that one college savings account earmarked for Grant. And that’s an especially good move because Grant’s college plans are still undecided. You can read that to meant that he may be choosing a more expensive college than his sister.
I remember a family friend describing his son’s new job in finance to us one time and saying, “He moves money around all day.” On days like today when I’m opening and closing accounts I feel a little like that money manager.
I just wish my amounts were as big as his no doubt are.
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