What should you do with your child's college fund if they end up not needing it?

I have a friend whose kids refused to go to college, so she took their college fund and went on an African safari--without them. But, assuming that you want to do something to benefit your child, I would say put it aside for something that benefits their future. You might roll it over into an retirement account for them, for example, or save it for a down payment on their first house. It's tempting to spend it on some instant gratification like a car, but it took you long time to save those funds and it should be invested in something that will bring long time benefit.

You can only use it for certain things if you set up a 529 account. If it is just a savings account, then you can do whatever. Most financial advisors will tell you to help your kid invest with it.