Student Savings Plans

Student Savings Plans

Dear Carrie: I've always encouraged my daughter to work to contribute to her college costs and she's managed to save quite a bit. Now I'm told that her savings may actually work against her in terms of financial aid. Why is this? Is there anything we can do? --A Reader

Dear Reader: I think it's great that your daughter is saving for college. To me, having kids contribute to college costs has a double benefit: It not only instills good savings habits, it also gives students a personal stake in their education.

However, when it comes to qualifying for...