@Janine – Thanks!! We think he’s super cute too, but all parents do, haha…

We don’t have a college fund set up for our two year old yet. No way is my kid getting a college fund before all of mom and dads student loans are paid off! Just a few months away from being student loan free though!

As to including it in your net worth. Tricky. Maybe make it a separate footnote to show how it goes up or down without including it in your net worth.

529 accounts do not have to be opened within the state in which you live. The general rule is that if your state gives you a tax deduction, you open the account up there. If not, you open one wherever the fees are cheapest/investments are best. You can use the funds in any state.

I opened one for my little girl recently with the one sponsored by Utah – I live in California. The Utah plan has Vanguard funds and were the least expensive. I use USAA as well, but their funds are more expensive in the 529 plans.

But I must say you all bring up some EXCELLENT points. And honestly it *is* helping veer me off more in one direction than the other. Which you’ll find out about soon in our next net worth update ;) The main thing this really hinges on is whether or not Baby $ or any future kids of ours DO end up using this 529 in the end. Which we’d have to assume that they WOULD or else what’s the point in even starting it up? If they didn’t, then the money would indeed be 100% ours again – even while penalized up the a$$.

We’ll think a little more on it though and make a final decision here this week. So thanks for all your input! I knew you’d have an opinion one way or the other :) It’s one of those weird gray areas for sure…

A few comments:

@Elle – I LOVE the idea of having “family money meetings!” I SO want to do that too once it’s time for us – that would be sweet! :)
@Mandy @MoneyMasterMom – Yeah, that’s the sucky part. But then again if he WERE 100% going to college and using it later, then it really *would* be an expense, ya know?
@Adam Hathaway – Haha yeah, that’s an excellent point actually – I hadn’t thought of that before ;) Kinda like the whole “Do I inlcude our quarterly tax money in there too” type of deal. You could, but you’re gonna get a huge hit every 3 months! So in that regard it’s TOTALLY not worth it.
@Brian – You bring up a fair point :)
@AverageJoe – Haha… Well even if I DID try that, I’m sure all those penalties that would kick in would totally wipe out any huge profits or whatever anyways ;) Although you never know – if the money magically doubles every year, you might make out pretty well!
@Jacquie – Feel free to vent anytime! I’m learning a lot from it :) Good things to consider and think about as our boy AND us grow a lot over the next 18+ years – thanks for your input!
@Alexis – Haha… I guess their piggy banks do go along the same line as their savings accounts ;)
@JoeTaxpayer – Ahh, I kinda like that – totally makes sense. I mean, even if I just made a few line items to our net worth at the bottom including the info, but *not* in the calculations, that would seem to do the trick too. Hmmm… Good info man.
@Marilyn – YAYYYY, congrats!! And thanks so much – We think he’s pretty cute too, but you know how parents are ;) I pray yours comes out nice and healthy and already smart with money! Hehe…
@Joe @ Retire By 40 – Oh wow. I mean, it does makes sense in an overall game plan to put it in sooner than later, but I’m with you on that one – I’d MUCH prefer to do slower over time than in one large chunk. And honestly I think that’s perfectly fine. Doing things more natural and non-stressful over the years is worth the few percentage points you may lose (or maybe even not!) by doing it all up front. I’m with you on this one :)
@becca – Amen on that. I’m all about giving them good *chances* in this world! :) And that’s def. something to consider – whether or not it keeps use motivated or not seeing it in our net worth like that… I’m gonna have to think about that for a few, it hadn’t crossed my mind. Thanks!
@Cassie – Yup, we can access it pretty much any time we desire, but then we get hit with all the penalties and taxes/etc/etc… But it IS possible.
@Mrs. Pop @ Planting Our Pennies – Awwwww!! That would be awesome!!! Daddy and son updating their net worth every month on the kitchen table – tears to my eyes! :)
@David Hunter – Haha.. Big pimpin’, baby! Literally! (the baby part, that is – not the pimping! ;))
@debtgirl – Oh man, I hope so! I guess you never really think about them blowing it all and not listening to you, haha… I always assume my boy will just be a perfect litle angel ;)