ASK NEALE: College Fund Dilemma

(VIDEO) You've pinched pennies for years to save up a bundle for your kid's college fund. But what's a parent to do when your child wants to ditch school and buy a car with that hard-earned money?

Victoria from Arkansas has saved $50,000 for her son's education but he wants to buy a car instead. Neale's advice might surprise you!

I didn't know this! What kind of account did the mom use?

Hi Terry. It was an UTMA account. It's a custodial account set up for a minor(an UGMA or UTMA account). The Uniform Gift to Minors Act (UGMA) established a simple way for a minor to own securities without requiring the services of an attorney to prepare trust documents. Many parents use it to set up college funds.