DD & saving money

[Anonymous]

My daughter is a rising college junior. She wants to go to grad school, which will primarily be financed on her own. She has an internship this summer and will also have an on campus job both junior and senior years. She is TERRIBLE at saving money but knows she needs to. She wants to Venmo me 75% of her paychecks which I would then put into a 529 that she cannot access until it comes time to pay her grad school tuition. Otherwise she knows she’d spent every last cent. Would you be OK with this?

[Anonymous]

My child and I usually go half and Half on some purchases that I think are stupid and incessant. Say, a $40-50 pair of sneakers that she doesn’t really need. I pay $20 or $30 and she pays the rest. Sometimes I just say I won’t help but often we do this arrangement.

[Anonymous]

What grad program is this? Grads schools should be fully funded cuz your daughter will be (should be) working for the department.

[Anonymous]

If you get an income tax deduction for 529 savings (like in Md), be sure that you don’t claim the deduction. Then she should set up a 529 for herself so she can get the tax benefits.

Otherwise, yes, this seems wise. Knowing your weakness is wise and mature!

[Anonymous]

Anonymous wrote:What grad program is this? Grads schools should be fully funded cuz your daughter will be (should be) working for the department.

There are often still expenses - rent, travel to campus and back, etc. I doubt anyone thought internship wages would make a dent in tuition.

[Anonymous]

Anonymous wrote:What grad program is this? Grads schools should be fully funded cuz your daughter will be (should be) working for the department.

Med school, law school, Physical therapy, occupational therapy, physicians assistant, etc aren’t usually fully funded.

[Anonymous]

Repeat after me: Professional schools are not grad schools.

OP said grad school. Don't go to a program if you have to pay for it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What grad program is this? Grads schools should be fully funded cuz your daughter will be (should be) working for the department.

Med school, law school, Physical therapy, occupational therapy, physicians assistant, etc aren’t usually fully funded.

True. That’s why I asked.

[Anonymous]

Anonymous wrote:What grad program is this? Grads schools should be fully funded cuz your daughter will be (should be) working for the department.

Occupational therapy

[Anonymous]

What does she typically spend her money on? If it is frivolous (clothes and eating out), have her save $$ any way she can. If she uses her earnings for rent, she needs a plan.

[Anonymous]

Yes! I think this is a brilliant idea.

[Anonymous]

Sounds fine as long as you don’t claim the tax deduction

[Anonymous]

Couldn't she just leave you out of it and just set up a savings account at her bank? My son has one that he can't access via debit card.

Also, it's been some time since we went to grad school but DH and I both paid tuition for our M.A. degrees (international relations and similar field). I had a partial tuition grant based on high GPA and test scores - it was not the norm to go "for free."

[Anonymous]

Anonymous wrote:Couldn't she just leave you out of it and just set up a savings account at her bank? My son has one that he can't access via debit card.

Also, it's been some time since we went to grad school but DH and I both paid tuition for our M.A. degrees (international relations and similar field). I had a partial tuition grant based on high GPA and test scores - it was not the norm to go "for free."

She has a savings account that she puts a portion of her paychecks into each month. The problem is that she can transfer money from savings to checkings as easy as a few buttons on an app/online banking and thus spend the $$.

[Anonymous]

I would not allow this. By this age they need to train themselves to tamp down on spending. Not use someone else to hold their money for them.

So I would tell your daughter that if she can't save her money, that'll be her problem to deal with when she needs it. She needs to find a way to save on her own.