<p>I have about 60 grand in saving, should I spend them so that I have a better chance at getting scholarships? ie: buy a house, a car...</p>
<p>It may impact your Financial NEED, but that is different from scholarships. Scholarships are based on merit and awarded accordingly. Need is based on the FAFSA that you will fill out and is based on your family’s financial situation.</p>
<p>Well then should I spend all of my savings so that I can get financial aid?</p>
<p>Spend all your savings? Why on earth would you want to do that? Financial aid isn’t guaranteed to pay the full cost of college, even if you have an automatic zero EFC. Do some research on how financial aid is awarded, and calculate what your estimated family contribution (EFC) is, given your parents’ income and assets along with your own. If spending all of your savings leaves you with nothing, how will you be able to pay for college if you don’t get the financial aid you’re hoping for?</p>
<p>I have about $600 currently in my savings account, and hope to hit $900-1000 by Christmas. Do you think this will affect my FASFA, or is this just a really stupid question? haha</p>
<p>google FAFSA calculator …there are plenty of them on the internet. Plug in the information and you’ll get a quick estimate. You really should do some research on these issues, before even contemplating such things.</p>
<p>Many schools ask about your assets including homes and cars.</p>
<p>On FAFSA, student assets are expected to be spent at the rate of 20%/year. So if you have $1000, then that will increase your expected contribution by $200. You can invest this money in a 529 account (that’s a special savings account for college). The expected contribution rate of money in a 529 is 5.6%.</p>
<p>Rule of thumb: it’s better to have savings than not.</p>
<p>Well, $200 isn’t bad, and, to be honest, that’s pretty fair. I use this account for serious items, and college is pretty darn serious if you ask me, so I’m okay with that.</p>
<p>I have no idea how to set up a 529 account. I just asked my parents about one and they have no idea what one is. Can someone give me some shorthand on this? I live in PA.</p>
<p>Congratulations, you live in a state where contributions to 529 accounts are deductible on your state taxes.</p>
<p>[Make</a> College Possible - Pennsylvania Treasury’s 529 College Savings Program](<a href=“http://www.makecollegepossible.com/]Make”>http://www.makecollegepossible.com/)</p>
<p>Pennsylvania residents are not limited to investing in their own state’s plan. Another state may offer a plan that performs better and has lower fees,</p>
<p>Basically a 529 plan is like a savings or mutual fund account, where the money you put into it must be used for qualified education expenses (or else there’s a penalty to be paid). The funds are usually invested based on the age of the beneficiary, which means that if you’re close to college age, the funds will typically be allocated about 20% in stock and the rest in interest-bearing funds such as money market accounts and bonds.</p>