Funny fiance story

[basil]

I was shopping around for a new credit card today (my old one started charging an annual fee, so I want to drop it). Basically we use credit cards for the convenience of not having to carry cash and to get the rewards (airline miles, cash back, etc.) Since we''re getting married in a little over 6 months, we figured we''d make this our first joint account.

So we were looking at two Fidelity cards - one lets you contribute your rewards to your Fidelity account and one lets you contribute to a 529 plan.

Fiance: We should get this 529 one.
Me: Why?
Fiance: So we can pay for our kids'' college.
Me: But we don''t have a kid yet. We should do the retirement one instead.
Fiance: But we want to have a kid. And our kid will go to college before we retire.
Me:

I never really thought of things in that way. Somehow it just makes it all the more real that yeah - this is real and we''re going to be together forever. We ended up doing the retirement one because it still seems silly to be contributing to an account for an unborn and unconceived child. But he''s probably right.

 

[iheartscience]

That''s a little bit tender, basil! Awwww!

 

[Italiahaircolor]

It''s actually very thoughtful of your fiance to consider college for your children. With the rate tutition is increasing, it''s the smart thing to do!

My husband and I are saving (and have been) for our impending children to ensure that, no matter what happens to us, they will have more than enough money to get their degree. We don''t have any kids yet, but it''s something we both want...and there is no reason to put off for tomorrow what you could do today. We debated just establishing a trust for him/her...but decided that college comes first.

We will also lock in IL state tutition rates when our first child is born to make sure we get the very best deal possible.

 

[goldenstar]

Aw, sweet....

On a practical note--When I read your post I thought about an article on MSN.com about this very topic-- saving for retirement and college. I bookmarked it for my FI to read. I thought it was very interesting.

Here''s the link: MSN Article

 

[LegacyGirl]

Aww that''s so cute. I was thinking about this sort of thing... if I have children do I want to pay for their education? My parents didn''t pay for mine and I had to put myself through. I think it builds great character to do something like that but I also think that it would be nice to not have them worry about money as much as I did... does anyone else think about these things?

 

[Independent Gal]

I agree with you, Legacy. I come from a country where schools don't charge so much for tuition! I mostly put myself through undergrad (fairly cheap) and completely through my 3 graduate degrees (CRAZY expensive) on scholarships and elbow grease and I would like any future kids to also be responsible for themselves, to the extent possible. FI was spoiled all through his education, and he actually agrees with me. I wouldn't want them to WORRY about money, but I think spending a few years having only juuuust enough to get by does build character and gives you empathy for those who live their whole lives like that. It's good to know what it feels like to have to think twice about spending $2 on the bus.

As for Basil's cute story, I think you did the right thing, Basil. HEAVEN FORBID, but what if you never ended up having kids, for whatever reason? But I'm knocknocknocking on wood now.

 

[pjean]

Date: 3/3/2008 10:16:10 AM
Author: LegacyGirl
My parents didn''t pay for mine and I had to put myself through. I think it builds great character to do something like that but I also think that it would be nice to not have them worry about money as much as I did.

My father put himself through University on a shoestring, and so he didn''t see why my brother and I shouldn''t do the same thing. Problem: because of his income, I was not eligible for the type of need-based aid that he relied on. Further, I went to school in the US (I''m Canadian) which severely limited how much and where I could work. I had an academic scholarship that covered about half the cost, but a lot of the rest is loans. I ended up with a bank loan to cover the part that my school felt my parents should be paying, to go with the institutional loan they gave me for my own share.

So building character, yes. But circumstances are never the same generation to generation.

My $0.02.

 

[Independent Gal]

True, but IF it was you who decided to go the US for school, then that''s a choice (a luxury item) that I could see your parents wanting you to take responsibility for. You could have stayed in Canada where there are some excellent and affordable universities and where you could have worked. So unless your parents were pressuring you to go to an American school, they may well have thought "her choice, her bill".

Of course I don''t know the circumstances! So this is just an ''if'' scenario.