FAFSA confusion: Where to report non-IRA investments vs. savings accounts with 'shares'?

The FAFSA asset categorization can definitely be confusing! Here's how to correctly report these: 1. The $24,000 managed by your financial advisor goes under 'investments' - this category includes any money in brokerage accounts, mutual funds, stocks, bonds, etc. that aren't in retirement accounts. 2. Your credit union savings that shows as 'shares' (this is common credit union terminology) should be reported under 'cash, savings, and checking accounts' - it functions as a savings account regardless of what they call it. Basically, 'investments' includes money intended for growth/returns, while 'cash/savings/checking' includes money kept liquid for everyday use or short-term needs.

the credit union thing confused me 2! they always call it 'shares' but its just a regular savings acct. fafsa doesnt make this stuff easy lol

I had this EXACT same issue last year! I spent HOURS on the phone trying to reach someone at Federal Student Aid to clarify this. The explanation you got is correct - anything with your financial advisor that's not a retirement account goes under investments. Your credit union savings (even with the weird 'shares' terminology) is just regular savings. BTW - if you ever need to reach a real person at FSA, try Claimyr.com - they got me through to a live agent in about 15 minutes when I was stuck on hold forever. They have a demo video that shows how it works: https://youtu.be/TbC8dZQWYNQ. Totally saved me last year when I was completely confused about where to report our trust fund.

I think I might have reported this wrong on our 2024-2025 FAFSA 😰 I put my husband's brokerage account under savings because I thought investments only meant retirement accounts and college savings plans. Should I go back and correct our form? Will this cause problems with my son's aid package?

I've been doing financial aid applications for my three kids for years, and here's what I've learned: FAFSA's asset categorization is WAY more straightforward than the CSS Profile if your schools require that! On FAFSA: - Cash/Savings/Checking = liquid funds (including CDs, money market accounts, and yes, credit union 'shares') - Investments = everything else that's not retirement or your primary home (stocks, bonds, mutual funds, 529 plans, rental properties, etc.) - Business/Farm = self-explanatory but has specific requirements The most important thing is to be CONSISTENT between years unless your situation changes. The financial aid office looks for big unexplained changes.

wait so do i need to report my bitcoin as an investment? its only like $900 worth

My financial advisor told me that money market accounts should go under "Cash, Savings and Checking" on FAFSA even though they're with our investment firm. Is that right? The categorization is so confusing!

Update: I just went through the FAFSA and found the help text explaining this! If anyone else is confused, click the little question mark icon next to each category. The explanation for investments specifically mentions "stock, bonds, mutual funds" and other non-retirement investments should go there. I'm feeling much more confident now about how to report everything correctly.

I included my rental property as an investment last year and got selected for verification. Had to provide so much documentation it was ridiculous. Just make sure whatever you report you have statements to back it up in case they ask!

Thanks everyone for this helpful discussion! As someone new to the FAFSA process, I was struggling with the same asset categorization questions. The clarification about advisor-managed non-retirement accounts going under "investments" and credit union "shares" going under "cash/savings" is exactly what I needed. I also appreciate the tip about using the question mark help icons - I completely missed those! Going to make sure I have all my statements organized in case of verification. This community is so valuable for navigating these confusing forms.

This thread has been incredibly helpful! I'm in a similar situation with a mix of accounts that I wasn't sure how to categorize. I have about $15,000 in a Vanguard account that's not retirement-related, plus a regular savings account at a local credit union that also uses the "shares" terminology. Based on everyone's explanations, I now understand the Vanguard money goes under investments and the credit union savings goes under cash/savings. One follow-up question though - I also have a small amount in a high-yield savings account through an online bank. That would still be considered "cash/savings" rather than investment, correct? Even though it earns a higher interest rate than traditional savings?

As someone who just went through this process with my oldest child, I can confirm that the categorization advice given here is spot-on. One additional tip that helped me: if you're ever unsure about a specific account type, look at how it's titled on your tax documents. Money market accounts, high-yield savings, and credit union "shares" typically show up as interest income on your 1099-INT, while brokerage accounts show up on 1099-DIV or 1099-B forms. This can be a helpful way to double-check your FAFSA categorization - if it generates interest income, it's usually cash/savings; if it generates dividends or capital gains, it's typically an investment. The FAFSA instructions also mention that you should report assets based on their value as of the day you submit the form, so make sure you're using current balances rather than year-end statements.

This has been such an educational thread! I'm getting ready to file my first FAFSA for my daughter and was completely overwhelmed by the asset reporting requirements. The distinction between investment accounts and savings accounts seemed so murky, especially with all the different terminology banks and credit unions use. Reading through everyone's experiences and explanations has really cleared things up for me. I particularly appreciate the tip about using the question mark help icons on the FAFSA form itself - I had no idea those existed! And the suggestion to cross-reference with tax documents (1099-INT vs 1099-DIV) is brilliant. I feel much more confident now about correctly categorizing our various accounts. It's amazing how much clearer everything becomes when you have real people explaining it in plain language rather than trying to decipher the official instructions alone.

I'm so grateful for this detailed discussion! I was literally sitting here with my laptop open staring at the FAFSA asset section, completely paralyzed about where to put different accounts. Like many others, I have a mix of advisor-managed investments (about $18k) and what my credit union calls "share savings" ($3,200). The explanations here have been a lifesaver - investments for the advisor accounts, cash/savings for the credit union despite the confusing "shares" terminology. The tip about cross-referencing with 1099 forms is genius and will definitely help me feel more confident about my categorizations. It's such a relief to know I'm not the only parent who finds these forms confusing! This community is amazing for breaking down complex topics into understandable guidance.