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For people who have kids who do something different than intended with money saved in the kid's name, I'm wondering how the conversation goes. My son and I are heading to the bank today to cash a few savings bonds I bought in his name for college. It was a time when savings bonds were a better bet than CDs and I had a specific way of titling them (in his name POD me) so I knew these were the ones I bought for college.

I put them in his name because we weren't going to qualify for the education benefit and his tax hit is lower than ours(and we'll pay the taxes for him).

Here, it goes like this - hey, Musicman, we need to go cash these bonds I bought in your name so I can pay your fall bill. Musicman - fine, I'm off today anyway.

I know what would happen here if somehow he wanted to spend it some other way. Me- You probably want to check into [local community college] and find somewhere to live because this is the end of money from us for college or anything else.

Do people whose kids use the money another way go ahead and pay for college out of other funds ? My kids have been financially astute enough that I've never been concerned with having UGMA accounts, etc. I see so many posts about the dangers of kids using money in ways not intended that I definitely wonder about the conversations after that.


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