Might I make a segestion?
by aka_tripleB - 12/20/08 12:44 AM
In Reply to: Financial effects by briceone
Depending on how old your daughter is, you might want to take a portion of her allowance she is no longer getting and put it aside for college and extreme emergencies. Not a college fund, just a savings account or CD, but separate from any savings you may have already started. That way, if you really need extra money you can access it without going into college savings that you already have set up. And while the money is allocated for something, it's not like you're not saving. Then when she's in college, use whatever money you have saved to keep unsubsidized Stafford and other loans that immediately begin accruing interest as low as you can. But don't use the money to pay off subsidized Stafford loans until after graduation, because those are interest free until she's out of college. That's how my parents and I got me through college without any student loans lingering over my head. Well, for the most part. I didn't have an allowance nor did my parent have a separate collage fund that could be used for emergencies as well.
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