Suze Orman's All-Star Advice - Episode 3
SUZE ORMAN: So, Mario, here's the thing. I know you want money in your daughter's name, however, it's dangerous when you have money in your daughter's name because little angel daughter could - I'm not saying she's going to - but she could grow up to be devil daughter once she turns 18 years of age. We see it happen all the time. Then she has this money in her name and once she's of legal age she can go and do anything she wants with it. She can buy a BMW, she could buy drugs. She can do anything she wants, therefore, you are far better off keeping that money in your name and investing it for her future. The best way to do so when it's for college is a 529 plan. So, where do you find 529 plans? Go to savingforcollege.com. It is the number one website in the entire United States on 529 Plans.That's where you find the information. Me personally? I would not be putting money in a child's name until I knew that child was responsible.
Next: 529 College Savings Plan Basics