Don't Tell People Not To Save Money Just So They Can Pretend They're Poor

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Posted: Jun 19, 2019 12:08 PM
Don't Tell People Not To Save Money Just So They Can Pretend They're Poor

Source: AP Photo/Mark Lennihan

Dear Dave,

I’ve got a couple of friends who were advised by their financial planners not to open college savings accounts for their kids. Their planners told them this would count against their children’s ability to receive financial aid and assistance when it’s time for college. Apparently, these planners told them to put the money into their own retirement accounts. It’s my understanding, however, that both the child’s and the parent’s financial situations are looked into when determining financial aid. Can you please shed some light on this? 

Jeanette

Dear Jeanette,

So, if a financial planner told you not to get a job because then you can apply for welfare, are you going to listen to that person? What kind of moron gives financial advice like this? You don’t tell people not to save money for something, just so they can pretend they’re poor!

Save whatever money you can, and send your kid to school. Why is that such a difficult concept to grasp? People need to stop looking for tricks and shortcuts, because there aren’t any that will be beneficial in the long run. I’m not going to pose as broke—fraudulently—to get financial aid for my kid. That’s ridiculous!

I hope I wasn’t unclear.

—Dave