Never Save Money in a Child’s Name
Today only the first $650 earned is tax free. $650-$1,300 is taxed at a rate of 15%. Everything over $1,300 is taxed at 28-31%. Therefore there is little tax incentive to save money in your child’s name. Another point ot be made is that when a child has money there ability to qualify for financial aid is greatly reduced. It is easier to get student loans when the child’s parents have the money instead.