If you are a grandparent

IF you are a grandparent and have garnered and well invested your resources then for your grandchild when he or she is born one of the things you might want to do is to set aside and investment account for their college education.

A good rule of thumb for a U.S. public or private Bachelor or Art or science would be to set aside at least $10,000 at birth in an investment instrument of your choice. There are legal ways to set something up like this to mature when your grandchild is around 17 or 18.

However, at least in California, there is a part of the law you need to be aware of which is that this fund becomes the property of the 17 or 18 year old when they reach 17 or 18 years of age. This is set by law so at least the 17 or 18 year old receives their funding. However, as we all know most 17 or 18 year old might just go to Europe or Hawaii and go surfing or traveling for 10 years with that kind of money instead of going to college and creating a future for themselves. So, the laws are set up so at least the young adult gets the money instead of a relative absconding with it instead.

But, being forewarned is forearmed especially if you have the long term interests of your grandchild in place.

My youngest daughter's grandfather set up something like this for my daughter when she was born and likely by September I will also set up something like this for my new grandson as well from my oldest son. By adding slowly to this fund over the years likely by accruing and compounding interest over the years if you are careful you might wind up with about $200,000 within 17 or 18 years. So, now this amount of money likely is going to get your child or grandchild through college at that time if you can convince them to go and get a degree. Also, they don't necessarily have to pay back this money and at least won't have to be making student loan payments until they are in their 40s like many people have to today.