How much do you put away for child's college?

[disykat]

For those that prepay for certain schools, what happens if the kids decide not to go there or that school does not have the degree plan your child wants to pursue??

I've never heard of prepaying for specific schools. We are in a prepay plan. Although it is our state plan, it is transferable pretty much anywhere.

Oops - just saw that JamesMom already answered.

 

[ksjayhawkfan]

We put $300 a month in a 529. That amount needs to be raised in the next year or so to accomodate all of our kids instead of just the older 2.

 

[kevbower]

I think its 5000 per annum

 

[deerhart]

Since we still have lots of student loan debt, I don't put much in my kids savings plans (about $1000 a year total so like $500 ea). It should go up as our income gets higher (after DH gets his masters and a new job).

I have $30 each paycheck directly put into the 529 plan and I deposit $25 quarterly from the bank account into each child's plan.

 

[tinkarooni]

What an interesting poll this is. I was surprised how many said nothing although it appears that there are all sorts of reasons for that as some posters have explained. I have long been concerned that we weren't doing enough and we save a pretty good chunk. Everytime I feel a little room in the budget I increase both the regular savings and the college saving sby a little bit and we don't really notice the increase.

What we do is save $200 per month into 529 accounts for our two children and than the majority of our savings goes into simple saving accounts. The market worries me and I have an 11 year old and a 9 year old. Not much time for the 11 year olds money to recover. I figured a little in both was the way to go.

 

[MELSMICE]

I have a DD that is a junior in college & a set of twins that will enter college in the Fall.

Believe me..............you can never save enough!!!!! That being said, don't skimp on retirement savings for college expenses.

 

[kelleyrn2000]

I think it's interesting how different families view college tuition/expenses. I paid half of mine, then took out a loan for the last two years of my college education, spending two years after graduation to pay it off. I used scholarships, grants, and loans to cover the $30,000 it would have cost me.
My dh's parents didn't pay for college at all. Luckily, DH's job paid for his tuition so he didn't have to take out a loan. His sister had a loan that she still owes on after 15 years (ETA she still owes because she isn't financially responsible).

For me, I feel like I appreciated college more knowing I was paying for some of it myself. Plus, getting a scholarship pushed me harder to get good grades too. I'm hoping when my kids are in college they will be able to get scholarships too.

Now, in dh's family, when a grandchild graduates high school, they are given the choice by dh's grandmother to either get a lump sum cash amount, or to take a trip of their choice. This is dh's grandmother's reward for graduation, as she values education very much. I am hoping that all of my kids choose the trip (would love to be able for them to go to Europe)! DH took the money...not sure what is wrong with him

 

[daisy2jae]

I'm sure a lot of people disagree with me but that's the wonderful thing about being able to make your own choices. My DH and I grew up paying for things ourself since we were in high school. We played sports, worked, got good grades, and had wonderful parents. My DH went to college and I didn't. I opened my own daycare business and work from home. We are currently putting $50 per month per child into a universal life insurance policy that will be turned over to them at age 18. Any money received for bdays, xmas, from grandparents, etc get put into this account and in the past has averaged apx $500 per year. They will have a cash value but if they chose to take it out to use it their choice. We will support our children with what they need help with through school as we can. However by allowing them to pay for it will make sure they take it serious. I know that many children take school serious even with the help of their parents. This is our choice and why we did. My DH got leukemia at age 19. We learned quick how to pay for school, tons of medical bills, and having a family. We turned out just fine and I'm sure my children will to. We hope they choose college but it will be up to them. (We'll point them in the direction as much as we can without being too pushy!)

Again sorry if you don't agree.

 

[delmar411]

nothing. ODD just received confirmation that she's got a full scholarship for 4yrs at any state school (and a couple OOS as well) and we expect to qualify for the younger 3 as well. (Indiana's 21st Century Scholar program)

My parents put aside $500/yr for each of the kids in a 529 for their books, room & board. That should cover them for at least a year, if not 2 (depending on how much it can be stretched when the time comes). And then DH and I will cash flow the remaining years for those items.

DH and I are both in school FT and are carrying a lot of loans. It's not something I want my kids to face when the time comes.

 

[Ciao Mickey]

We have a just turned 2 year old and, after a lot of deliberation and stress, decided to open a 529 as the means for his education. Currently, we are putting $200 in it a month and, when we opened it in 12/09, we put in the amount that would have equaled $200 a month up to that time. We intend to put at least $200 a month in it for him; however, I'm not sure if I'm not putting in enough or what I need to do. Calculating it, it seems by the time he goes to college, he will be 19 because of where his birthday falls, so he will have $45,600 at the very least if we don't have another market crash. Then, while he is in school, another four years would equal another $9600. This is all without interest from the account. I'm unsure if it's enough, but we also have to worry about retirement, etc.

If it's not too nosy, I would love to hear what others are putting away in anticipation of their child's education to see if I'm in a decent range or if I need to figure out a way to contribute more -thanks!

We didn't put money aside for college. What we did instead was pay off our mortage early, and then use that money to pay for school each month.

 

[NYCDiane]

I know most people just swear you "have to" put aside $$ for your child's college, etc... HOWEVER, I've been doing a lot of reading and watching various financial shows and many of those agree that you should have your retirement fund FULLY funded before even considering putting a dime away for your child's education. The reasoning is that you get one chance at financing your retirement --- your child has many options to pay for his/her own college (working, loans, grants, scholarships, work-study, etc)

 

[jodifla]

We have the Florida prepaid plan and got it when DS was born. It's less than $65 a month.


FLorida has lots of great colleges, with every major you can think of. And we will likely be back in Florida full time by the time he starts college.

 

[DISdreamin']

We have a few thousand in each childs 529, as well as a few thousand each in bonds from grandparents. After that, they're on their own.

Seriously, we'll probably cash-flow college as much as possible when the time comes, but I certainly expect them to have to take out student loans and work summers to help pay for college. I think being personally invested in their education makes them value it more. JMO, of course, and I'm sure others will disagree (here on the DIS, noooo...no one ever disagrees - lol!).

 

[budbeerlady]

We started Dd's 529 when she was 3. I put in a little with direct deposit each paycheck, I don't expect to have the whole thing paid. I have enough for 1 year right now at the school she thinks she needs to attend. (I am sure that will change 100x) We pay a hefty amount monthly toward her private tuition and will continue that once she starts college, so the rest she will need to help come up with. I figure we will be able to cover about 3/4 of the costs easily.

 

[jodifla]

We have a few thousand in each childs 529, as well as a few thousand each in bonds from grandparents. After that, they're on their own.

Seriously, we'll probably cash-flow college as much as possible when the time comes, but I certainly expect them to have to take out student loans and work summers to help pay for college. I think being personally invested in their education makes them value it more. JMO, of course, and I'm sure others will disagree (here on the DIS, noooo...no one ever disagrees - lol!).

I definitely think it's fair to have your child contribute. I only get angry when I read, "Well, I put myself through college, so my kid's on his own" or something to that effect.

I'd never want to saddle my child with the kind of debt I see some folks have on this board. 50 grand? 100 grand? Astonishing.

I graduated with about $10,000 in debit with about a 3 percent interest rate. I also had to work about 10 hours a week to get my financial aid. Payments after graduation were around $100 a month and so didn't cause me any real stress...and I got a good job right out of college in a very competitive field because I went to the right college and got the right experience.

 

[DawnM]

We started a savings for my boys for college, but have stopped that and are aggressively funding retirement and our IRAs.

We don't know where we will live by the time our kids are college age. I have no plans to live HERE anymore! LOL~!

But, I am also not currently working and I plan to go back to work at some point.

We can cash flow college if our children go to a local school and live at home. Whatever they want beyond that they will have to fund the difference.

Dawn

 

[thebeesknees]

We are funding each of their 529 plans with $5000 every year. I still joke to DH that it will only cover maybe 1/2 a semester's worth of meals by the time they get to college, with the rising costs of education these days! Our main priority right now is to get our IRA's funded with as much as possible. DH puts 33% net take-home pay into that every month. Mortgage will be paid off in 13 years if we do minimum payments only, but we are trying to put a little extra toward that each month, too. I'd love to see us entirely debt-free (including mortgage, right now that is our only debt) by the time the kids are in college. I know we'd enjoy our empty nest that much more!

 

[DISdreamin']

I definitely think it's fair to have your child contribute. I only get angry when I read, "Well, I put myself through college, so my kid's on his own" or something to that effect.

I'd never want to saddle my child with the kind of debt I see some folks have on this board. 50 grand? 100 grand? Astonishing.

I graduated with about $10,000 in debit with about a 3 percent interest rate. I also had to work about 10 hours a week to get my financial aid. Payments after graduation were around $100 a month and so didn't cause me any real stress...and I got a good job right out of college in a very competitive field because I went to the right college and got the right experience.

I graduated with over $40K in debt because my parents were not in a financial position to help, thus they didn't. It wasn't a choice for them, it was either put food on the table or help me pay tuition - and since going to college is a choice, not a necessity IMO, I knew if I chose to go I had to pay. Thankfully, I got small grants and such, but the cost of about 11 years of college does add up.

I'm so glad I went, and I want my kids to go if they want to, but I also want them to shoulder some of the financial burden as well. No, I don't want them coming out $40+K in debt, but depending on the field it isn't all that hard to pay it down. You have to consider the field though - if the field won't pay well, you certainly don't want to go into heaping gobs of debt to go into it!

 

[mjkacmom]

I put about $1000 a year into their 529's, and they each have about $10,000 now. We will probably use most of everyone's money for #1, because after that, we will have at least 2, if not 3 , in college at the same time, so will qualify for a lot more financial aide. This is the best we can do with 5 children.

 

[mom of princessx2]

We only put away $100 per month but that is because I choose to stay home with them. It certainly means you have to cut corners but I will be working again by the time they go to college so we will be able to contribute more then. My sister is also putting away $1000 per year for each in a 529.