<p>I am a rising senior who will be going to college next year. Now, I have a job that pays pretty well, and with that comes a dilemma. I do not currently have a bank account under my own name. Now, in the new USNews College issue, there is brief mention of the fact that it is harmful (in regards to financial aid) to have a bank account with a large sum of money in it under the student's name as the expected student contribution % is far higher than that of parents. So what should I do? Will it really be that harmful for me to have a bank account with a decent sum of money in it? If so, what is the alternative?</p>
<p>I'd say open it under your parents' name (either as a separate account, or feed it into their main account) and keep very careful track of what's in it.</p>
<p>Yes, the colleges will expect a higher percentage of your money than your parents' money, but is it really right to try to "cheat" by hiding your money? You will still have to list how much money you earned this year and perhaps submit tax forms. The colleges might be a bit suspicious to find you earned $15,000 but have absolutely no savings.</p>
<p>RC: the important amounts for fin aid are A} the amount you earned, per your tax return, and B} the amount in savings on the day the FAFSA is filed, around Jan1 of 12th grade.</p>
<p>If you make under $4000 over the year, you can generally still get good aid, depending on your families numbers. You can certianly look at your earnings and determine whether you need to buy things and then do so before filing the fafsa. NO, you don't want to go spending $15000 on silly things to avoid using it for your education, because they will see that income and expect some to go there any way. It is only things you would have purchased anyway that you ought to buy before declaring savings on the FAFSA</p>
<p>You could open a ROTH IRA (saving for your retirement). Sometimes these funds are considered more leniently than other assets. I'm not certain though, so you may wish to consult your parents' accountant or tax advisor about all of this.
I think it will make you look more attractive to colleges if you can show you're paying a large amount toward your education from wages you earned while attending school & getting good grades. I'd never try to hide assets by putting it in parents' name--schools are aware of all the "tricks."
HImom</p>
<p>So I suppose a small amount like <$1000 is okay right? That money all goes toward college expenses (dorm stuff, entertainment, dinner with friends) since my parents are paying tuition, room & board and books. And my account is a checking acct, if that matters</p>