Quote from: kireinaha on November 28, 2013, 06:46:20 PM

Quote from: noob2001 on November 13, 2013, 12:30:04 AM

its an online savings account, in my name. i have full access to it and there isnt any restrictions. the account was getting decent interest, but hardly anytthing now. the money is just sitting inflating anyway. i follow ron paul and austrian economics. so i know the govt and central bankers are scum for inflating, and burdening young people with debts. i want to make a stand. no point telling my parents, because they are socialists, and tbh they wouldn't understand anyway. Tongue

So your parents set up an online savings account, in your name, that you can withdrawal from for any reason? This is wrong on so many levels.

First of all, when parents invest in a college savings plan, they usually go the route of a 529 plan or an IRA. These can`t be withdrawn from until the child enrolls in college. Technically you can actually withdraw anytime, but you`ll have to pay taxes on the balance and penalties under certain circumstances (this would clearly be one of those circumstances).

If you`re not bullshitting everyone here and your parents actually set up a traditional savings account for your college, then they`re just dumb. Savings accounts nationwide are paying 0.21% right now (far from "decent"), which is clearly losing value year to year, because of inflation.

So again, this is why I find this story hard to believe. Not many parents put money aside for their children`s college, so the ones who do probably wouldn`t be so dumb as to just tuck it away in an envelope or savings account, and then further dumb things up by giving the kid full access.

Come on people, think with your heads, please.

You're one of those guys from r/personalfinance aren't ya?