I just heard about some good news for people investing for their kids’ college using 529 College Savings Plans. The federal tax deduction for the 529 plans that was set to expire in 2010 has been changed to be a permanent deduction.
We have been contributing to 529 college savings plans pretty much since the kids were born. One of the things I like about the plans is they are set up to very easily allow contributions from other family members.
We are not plan on sending the kids to college without them paying anything. We are planning on using the 529 plan to help cover some of the costs, but we expect them to take responsibility for some a portion of the costs, too. Beagoodmom paid for most of her college expenses by working and getting scholarship money.
My parents took care of most of the expenses from the first couple years. I managed to get a good amount of scholarship money and took out a few grand in college loans, but really did not work very hard in college until I went back to school after my time in the military. I think some of the laziness from the first two years can be traced to the small amount of responsibility I had in covering the expenses.
How many of you have started saving already? How much of the expenses do you expect your kids to cover themselves? Does extended the tax deduction for the 529 college savings plans make you more interested in starting/continuing with a 529 plan? How often to you check the progress of the savings plan you use?