Do I need to report my high school junior's personal savings account on FAFSA?

Yes, you absolutely need to report your son's savings account on the FAFSA. Student assets are assessed at a rate of 20% for aid calculations, while parent assets are only assessed at a maximum of 5.64%. This means that for every $1,000 in your son's account, his aid eligibility could be reduced by about $200. Some parents transfer student savings into a parent account before filing FAFSA to reduce this impact, but be careful about timing. Any large transfers made right before filing can raise red flags. If you're considering this strategy, do it well in advance (ideally more than a year before filing).

my kid had lik $3k in their account and we just didnt report it lol. nobody ever asked or checked. but that was back in 2022 so maybe things r different with the new fafsa?

I'm dealing with this exact situation with my daughter right now! She has about $7,200 saved from her hostess job and birthday money over the years. We were so proud of her for saving, then discovered it could actually hurt her aid package. It's absolutely RIDICULOUS that the system penalizes kids for being financially responsible while rewarding those who spend every penny!!! We ended up moving most of her money into a 529 plan in my name with her as beneficiary about 8 months before filling out FAFSA. Still waiting to see if this strategy works for us.

As a financial aid consultant, I'd like to clarify a few things about student assets on the 2025-2026 FAFSA: 1. Yes, student bank accounts must be reported as assets 2. The 2025-2026 FAFSA uses the new SAI (Student Aid Index) instead of EFC, but student assets are still assessed at 20% 3. The exact impact depends on your family's overall financial situation 4. There are legal strategies to minimize impact: - Spending student assets on qualified educational expenses before filing - Converting to a 529 in the parent's name (ideally 12+ months before filing) - Using student funds for necessary purchases they'll need for college Beware of advice suggesting you simply don't report assets - FAFSA can and does verify financial information against other federal systems.

When I was trying to contact Federal Student Aid about asset reporting questions last year, I kept getting disconnected or waiting for hours. Someone on this forum recommended using Claimyr, and it was seriously a game-changer. They connect you directly to an FSA agent without the wait. I got through in about 15 minutes and got all my questions answered about how to handle my daughter's assets. Their website is claimyr.com and they have a video demo at https://youtu.be/TbC8dZQWYNQ that shows exactly how it works.

I find this whole situation frustrating. When my son was applying, we had a similar situation, and we ultimately decided to spend down some of his savings about 9 months before FAFSA. He bought a reliable laptop for college ($1,200) and put the rest toward a used car he needed for his campus job ($5,800). This way, he got necessary items for college, and we reduced his reportable assets. The system is broken when it punishes students for saving while rewarding those who spend everything immediately. My son worked 20+ hours weekly throughout high school to save, only to learn it would hurt his aid eligibility!

One important thing to note is that the FAFSA asset reporting rules apply to accounts where the student is the owner. If you had set up a custodial account (UTMA/UGMA) when your son was younger, that is legally his asset even though he may not have access until 18/21 depending on your state. The new 2025-2026 FAFSA actually simplifies some things but still maintains the student vs. parent asset distinction. Plan accordingly and make any account adjustments well before the October 2024 filing period to avoid any appearance of asset shifting for FAFSA purposes.

There's no official "safe period" for asset transfers pre-FAFSA, but financial aid administrators generally recommend making any changes at least 12 months before filing to avoid the appearance of sheltering assets specifically for aid purposes. Transfers made within a few months of filing are more likely to raise questions if selected for verification. Keep in mind that the 2025-2026 FAFSA uses different financial information than previous years, focusing on your 2023 tax information and current assets at time of filing. So any adjustments to accounts should be made strategically with both timing and legitimate educational purpose in mind.

As someone who just went through this process with my daughter last year, I wanted to add that the timing of when you check your son's account balance matters too. The FAFSA asks for asset values "as of the date you submit your FAFSA," not an average over time. So if your son typically gets paid on the 15th of each month and you file on the 10th vs the 20th, that could make a difference in the reported amount. Also, don't forget that student assets include more than just savings accounts - any checking accounts, CDs, or investment accounts in his name need to be reported too. We almost missed reporting a small CD my daughter had forgotten about from when she was younger. The verification process caught it, but thankfully it was an honest mistake and we just had to submit updated paperwork. One last tip: if your son plans to use some of his savings for college expenses anyway (like textbooks, dorm supplies, etc.), consider having him make those purchases right before you file the FAFSA to legitimately reduce his reportable assets.

As a parent who just finished this process with my twin daughters, I wanted to share what worked for us. Both girls had saved money from summer jobs - one had about $6,000 and the other had $4,500. After reading about the 20% assessment rate on student assets, we were pretty concerned. What we did was have them use their savings strategically about 6 months before filing FAFSA. They each bought laptops they'd need for college anyway ($1,500 each), paid for their AP exam fees, bought some interview clothes for college applications, and put money toward their senior class trip. This way they got things they actually needed while reducing their reportable assets. For the remaining money, we moved it into 529 accounts in our names with them as beneficiaries. The timing worked out well since we did this in early junior year, so there was plenty of time before filing. I know it seems crazy that the system penalizes kids for saving, but working within the rules made a real difference in their aid packages. Both girls ended up with good financial aid offers, and they still had the benefit of everything they purchased with their own hard-earned money.

This is such valuable information! I'm in a similar situation with my daughter who's a junior and has about $5,200 saved from her part-time job at the local pizza place. Reading through all these responses has really opened my eyes to how much strategy goes into the FAFSA process. I'm leaning toward the approach of having her use some of her savings for legitimate college prep expenses over the next few months - she definitely needs a new laptop since hers is ancient, and we were planning to pay for SAT prep courses anyway. For the remaining amount, the 529 strategy sounds promising if we do it soon enough. One question I have - for those who moved money into parent-owned 529s, did you encounter any issues with gift tax implications or anything like that when transferring funds from your child's account? I want to make sure we do everything above board and don't create any other tax complications while trying to optimize for financial aid. Thanks to everyone for sharing their experiences - this is exactly the kind of real-world advice that you can't get from the official FAFSA websites!

As someone who works in a college financial aid office, I wanted to add a few practical points that haven't been mentioned yet: 1. The $8,400 your son has saved is actually relatively modest compared to what we see from some students, so don't panic! While yes, it will be assessed at 20%, the actual impact on his aid package may be less dramatic than you're imagining. 2. Consider having your son open a Roth IRA if he has earned income. Retirement accounts are NOT reported as assets on FAFSA, so any money he contributes there (up to his annual earnings or the contribution limit) won't count against his aid eligibility. Plus he'll get a head start on retirement savings! 3. If you do decide to move funds to reduce his reportable assets, document everything clearly. Keep receipts for any legitimate educational purchases, and maintain clear records of any 529 transfers. This helps tremendously if you're selected for verification. 4. Remember that not all schools use only FAFSA - many private colleges also require the CSS Profile, which has different asset protection rules and may ask about money that was recently spent down or transferred. The fact that you're planning ahead shows you're already ahead of the game! Most families don't start thinking about this until they're actually filling out forms.

I'm jumping into this conversation as a parent who's also starting to think about FAFSA planning for my son who's currently a sophomore. Reading through all these responses has been incredibly eye-opening! I had no idea that student assets were assessed so much more heavily than parent assets. The suggestion about Roth IRAs is something I've never heard mentioned before - that seems like such a smart long-term strategy. My son just started working his first job at a local grocery store, so he'll have earned income this year. Does anyone know what the contribution limits are for teens, and are there any restrictions on when they can access the money if they need it for college expenses later? I'm also curious about the timing aspect that several people have mentioned. If we're looking at filing FAFSA in fall 2026 for my son (he's class of 2027), when should I start implementing some of these strategies? It sounds like the earlier the better to avoid any appearance of asset manipulation, but I want to make sure I'm not being overly cautious and missing opportunities to help his financial aid prospects. Thanks to everyone who's shared their experiences - this is exactly the kind of practical advice that makes this whole process feel less overwhelming!

This thread has been incredibly helpful! As a parent of a high school junior myself, I was completely unaware of how differently student vs. parent assets are treated on FAFSA. The 20% assessment rate on student assets versus the maximum 5.64% on parent assets is a huge difference that I wish was explained more clearly in the official FAFSA materials. I'm particularly interested in the Roth IRA strategy mentioned by Amara - that seems like such a win-win situation where your child gets a head start on retirement savings AND removes assets from FAFSA calculations. My daughter has been working part-time at a local bookstore and has saved about $4,200. Setting up a Roth IRA for her earned income seems much better than either leaving it in her savings account or trying to spend it down on items she may not actually need. One follow-up question - does anyone know if there are any downsides to the Roth IRA approach that we should be aware of? It sounds almost too good to be true that we can completely remove assets from FAFSA consideration while still keeping the money available for our child's future. Are there any scenarios where this strategy might backfire or cause issues with financial aid calculations? Thanks again to everyone for sharing such practical, real-world advice!

As a newcomer to this community, I'm finding this discussion incredibly valuable! I have a high school junior as well, and I had no idea about the different assessment rates for student vs. parent assets. The 20% rate on student assets seems so unfair when we're trying to teach our kids financial responsibility. I'm particularly intrigued by the Roth IRA strategy that's been mentioned. My son has been working at a local restaurant and has saved about $3,500. The idea that we could move some of that into a Roth IRA to both help with FAFSA planning AND give him a head start on retirement savings sounds perfect. One question I have - when people mention making changes "well before" filing FAFSA, does this 12-month rule apply to Roth IRA contributions too? Or is that different since it's a legitimate retirement account rather than just moving money between regular accounts? I want to make sure we do everything properly and don't inadvertently create any issues with our financial aid applications. Thanks to everyone for sharing such detailed experiences - this is exactly the kind of guidance that parents need but rarely find in official resources!

As a newcomer to this community, I'm so grateful to have found this detailed discussion! My daughter is also a high school junior, and like many of you, she's been diligently saving money from her part-time job at a local tutoring center. She has about $6,800 saved up, and I was completely unaware of how this could impact her financial aid eligibility. Reading through everyone's experiences has been incredibly enlightening. The 20% assessment rate on student assets versus the much lower rate on parent assets seems so counterintuitive when we're trying to teach our kids good financial habits! I'm definitely interested in exploring the Roth IRA strategy that several people have mentioned. It seems like such a smart approach - helping with FAFSA planning while also giving her a fantastic head start on retirement savings. She definitely has enough earned income from her tutoring job to support contributions. One thing I'm wondering about - for those who have successfully used the Roth IRA approach, did you move all of your child's savings into the IRA, or did you keep some in regular accounts for more immediate college-related expenses? I'm trying to balance the FAFSA benefits with making sure she still has some accessible money for things like college application fees, senior year expenses, etc. Thank you all for sharing such practical, real-world advice. This kind of strategic planning is exactly what I needed to learn about but had no idea where to start!