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

[prncess674]

Rats - doesn't sound like a double English/Spanish major can snag that!!!

I am sooo glad my parents also sat down with me at the beginning of my college career and talked about my future and how I planned on financing the lifestyle I planned to live. I did my research and realized that an accounting degree with a good GPA would open many doors. I joined school and church organizations and NETWORKED NETWORKED NETWORKED!

 

[prncess674]

My DH works at one of those firms and at a pretty high level. You don't get into the "mid six figures" in this profession until you generally are at least 20 years in - at least not in our market. (I guess maybe in certain markets like NYC it would be different.) And that's only if you are in the tiny percentage of folks who make partner (or who even want to make partner) and after you've worked your life away at 60-70 hours per week nearly year round. And that rarely stops once you make partner.

I haven't even hit the 10 year mark and I hit those figures several years ago and most of my friends were at competing firms and WE DO compare numbers, so I don't think I am an anomoly. I don't live in NYC and made the leap over the six figure mark while working in Houston, not exactly NYC living standards.

Sure I work hard, but I am learning skills that are in high demand. I don't slog in the low level trenches doing audits or personal tax compliance which is maybe why your husband is in the wrong group.

 

[Mad4Mickey]

I put enough up when my own were growing up for a 4 yr degree . I had 2 accounts for each of them , one for thier car and the other for school . I bought them both cars and emptied those accounts . My DD will get a check for the balance of her school account when she turns 25 she has not used it all up yet . My son used almost all his up and will also recieve his balance when he is 25 .

We have our Grandchild now and it took a small fight with my SIL ( he got over it THANK GOD ) but we have 100 each week taken out of my check to go into her savings for her school. Her Poppie Pop has 200 a month come out of his for her car fund .

My SIL paid his own way for everything . ( A lot to be proud of! ) He didnt want his child to be handed much he wants her to work for it . I also understand that .

 

[A Mickeyfan]

FSU 2009 3.5-4.1 academic GPA; 25-29 ACT composite; 1700-1930 SAT total

USF Fall average GPA: 3.80, average SAT: 1185, mid-range SAT: 1090-1270

UF's 2008 class had an average 4.06 GPA and 1963 (out of 2400) SAT score

UCF Freshmen enrolled in Fall 2009 posted average SAT scores of 1225, ACT scores of 27 and average high school GPAs of 3.8

Florida schools have become quite competitive.

That they have! My DD is in FGCU 3rd year (actually 4 years but has changed her major) and she tried for UF for the last year (GPA 3.9 for her total college credits) and was turned down! She will finish her BA at FGCU, apply for UF for her Masters, then (probably) their Law School.

 

[A Mickeyfan]

A B average will qualify her for admission in a local state school that offers everything except law & engineering.

I lived in FL for two years while finishing up one of my degrees. The entrance requirements were very low.

I am not sure where you got that info from but it is wrong.. or I should say "out dated". Our schools are hard to get in now.. B average will not cut it anymore, unless you are talking community colleges.. that is a different story..none of our University's will take you with just a "B".

 

[A Mickeyfan]

Hey, where are those 75 - 90K straight out of school jobs? My daughter is graduating in three months and she'd like one, please.

I am in line behind ya.. my youngest is graduating high school this June.. would love for her to get a job paying that, then she can hold off on college while I finish paying for her sister's education.... I do think OP on that thread forgot to put in the decimal point (placed a K instead).... $7.50-9.00 and that is even a stretch for just out of high school

 

[prncess674]

I am in line behind ya.. my youngest is graduating high school this June.. would love for her to get a job paying that, then she can hold off on college while I finish paying for her sister's education.... I do think OP on that thread forgot to put in the decimal point (placed a K instead).... $7.50-9.00 and that is even a stretch for just out of high school

Not sure what you mean, but good students graduating from a traditional 4 year university with an accounting or MIS degree are being paid in the $75,000 US Dollar range at good firms.

 

[Mary•Poppins]

We have planned to pay 48,000.00 TOTAL for our 3 sons. How they plan to use this money is up to them. We have explained that going to a community college for 2 years then transferring could leave them debt free. And that they could go away .... but will HAVE to be financially responsible.

We will not let them go into 50,000 to 75, 000 in debt. College is a chance to further their education, but it does not guarantee a job.

We also have explained to them that our retirement and any unseen circumstances could alter what we plan on helping them with. We have really good boys with good heads on their shoulders at this time in their lives. I really hope it continues.

Both of my older sons got working permits this past summer and worked as custodian assistants to get the schools ready for August. They worked 40 hours a week for minimum wage. They are required to put 1/2 of what they make away for college. This job was an eye opener for them. They worked hard and learned to respect the custodians in their schools (especially when they had to clean the "stuff" under the school bleachers! )

Anywhoo .... I think helping my children pay for school is part of our responsibility as a parent, but I also think it is essential to teach our sons about the fact that they also have to pay for part of their schooling ... so that they are vested in their education.

 

[bethy]

I haven't even hit the 10 year mark and I hit those figures several years ago and most of my friends were at competing firms and WE DO compare numbers, so I don't think I am an anomoly. I don't live in NYC and made the leap over the six figure mark while working in Houston, not exactly NYC living standards.

Sure I work hard, but I am learning skills that are in high demand. I don't slog in the low level trenches doing audits or personal tax compliance which is maybe why your husband is in the wrong group.

That is very interesting and somewhat encouraging then. And yes, my DH does do more traditional public acctg work (although no low-level compliance) and is not in a true specialty services group. I see you are in D.C and it makes me wonder if you are in some sort of National Resource group (no need to respond here). I do know that they do very well. I also know that our market is a mid-level market. By the "mid six figures" I am referring to the $450k-$550k annually. Maybe I should encourage my DH to do that special rotation we have occasionally talked about! If he's going to work this hard anyway it would be nice to strategize for him to be better compensated for it.

You go girl!

 

[PEANUT1]

We do 100$ a month into a 529 for both of our girls. We will also have our house paid off in 13 years when my oldest is 19 so we will have extra money to pay for college. I do not, however, plan to pay for everything. I expect our girls to contribute. I will not go into debt to pay for college. My parents did and are now suffering for it.

 

[bethy]

Not sure what you mean, but good students graduating from a traditional 4 year university with an accounting or MIS degree are being paid in the $75,000 US Dollar range at good firms.

This is definitely true.

 

[crisi]

Not sure what you mean, but good students graduating from a traditional 4 year university with an accounting or MIS degree are being paid in the $75,000 US Dollar range at good firms.

I have an accounting degree myself, and work in IT. Your ranges are a little high, in my experience. But I live in the Midwest.

http://www1.ficpa.org/FS_FICPA/PublicFiles/Visitors/Accounting_Careers/HSC/Salary_Summary.pdf

 

[prncess674]

I have an accounting degree myself, and work in IT. Your ranges are a little high, in my experience. But I live in the Midwest.

http://www1.ficpa.org/FS_FICPA/PublicFiles/Visitors/Accounting_Careers/HSC/Salary_Summary.pdf

I am not really sure about your source but there is difference between "big" and "Big 4" accounting firms. We are paying nice salaries (~$80K USD) to new hires in tax consulting and traditional consulting services.

Per your source an experienced manager (not senior manager) would make ~$106K USD) I don't know a Big 4 consulting manager who would get out of bed for that salary.

 

[mommy2allyandaveri]

We've been putting $100/month per child since we found out we were pregnant. Plus any b-day or xmas money.

DD6 has nearly $11k, DD3 has nearly $7k.

This week our financial advisor told us about some bonds that will mature in 11 years. Pretty much gauranteed return and why not, the money is just sitting there for at least 12 years anyway.

We bought 4 bonds for DD6 for a total of $9808, when it matures it will be $20,000.

We bought 2 bonds for DD3 for a total of $4904, when it matures it will be $10,000.

We will continue to put away $100 per child per month. I hope that once we aren't paying $900/month for daycare we can increase it.

ETA: We chose not to start a 529 due to the penalties involved if you use if for anything other education. That said, I fully expect them both to go to college.

 

[DVCLiz]

I am sooo glad my parents also sat down with me at the beginning of my college career and talked about my future and how I planned on financing the lifestyle I planned to live. I did my research and realized that an accounting degree with a good GPA would open many doors. I joined school and church organizations and NETWORKED NETWORKED NETWORKED!

Oh, lucky you. I never thought to do any of that so my daughter is totally unprepared to exist in the real world.

 

[crisi]

I am not really sure about your source but there is difference between "big" and "Big 4" accounting firms. We are paying nice salaries (~$80K USD) to new hires in tax consulting and traditional consulting services.

Per your source an experienced manager (not senior manager) would make ~$106K USD) I don't know a Big 4 consulting manager who would get out of bed for that salary.

Well, if you look at the source, you'll see that that is average salaries and should be able to understand what the source says.

If you manage to get out of school and end up management consulting for McKinsey, yea, you'll make $80k out of school no problem - of course, McKinsey only has 9,000 consultants worldwide. The majority of those jobs do go to top graduates of top schools or to people with connections.

If you graduate from a normal state school with high marks, your most likely Big 4 job will be in audit - which is about $55k a year.

If you graduate from a state school with low marks, you'll probably make about $40k working outside of a Big 4.

I graduated with a degree in Accounting in 2008 from a state school with high honors. I'm very familiar with the jobs I was offered at that time - none of which paid me more than my job in IT. Including jobs from Price Waterhouse, E&Y and Deloitte. All which involved much longer hours than I'm willing to put in at this point in my career for the amount of money they were willing to pay.

ETA: If you are in DC, these numbers will seem low. They are national averages. DC is not NYC, but it is a place where accountants make a lot more than they do in Minneapolis, where I am.

 

[prncess674]

Oh, lucky you. I never thought to do any of that so my daughter is totally unprepared to exist in the real world.

You jest, but there are plenty of college grads who still think Mommy & Daddy are going to send them an allowance and pay the nebulous "credit card bill" post college.

Part of responsible parenting is showing your kids how much it costs to live on a day to day basis. Food, clothing, housing aren't free. Helping kids out is great and at 35 my parents say that spoiling is part of the job since they taught me how to support myself, but they aren't here to help out on the day to day of life. I struggled (mentally) with spending the $400 on a Kitchen Aid professional mixer and Mom & Dad surprised me by sending one to my house!

Paying for college means nothing if your children have no value for a dollar and have no idea that you are srimping and saving so they can party it up on a Mommy & Daddy free ride. Being 35 I now listen to stories of some of my "free ride" friends who are now freaking out because one parent has become disabled and can't support themselves because they have no savings.

 

[DVCLiz]

You jest, but there are plenty of college grads who still think Mommy & Daddy are going to send them an allowance and pay the nebulous "credit card bill" post college.

Part of responsible parenting is showing your kids how much it costs to live on a day to day basis. Food, clothing, housing aren't free. Helping kids out is great and at 35 my parents say that spoiling is part of the job since they taught me how to support myself, but they aren't here to help out on the day to day of life. I struggled (mentally) with spending the $400 on a Kitchen Aid professional mixer and Mom & Dad surprised me by sending one to my house!

Paying for college means nothing if your children have no value for a dollar and have no idea that you are srimping and saving so they can party it up on a Mommy & Daddy free ride. Being 35 I now listen to stories of some of my "free ride" friends who are now freaking out because one parent has become disabled and can't support themselves because they have no savings.

Thanks for the lecture/parenting lesson but I believe I have it covered. My daughter is well aware of what it takes to live day to day and has planned accordingly. And she's getting her Kitchen Aid mixer as a graduation present.

 

[prncess674]

If you manage to get out of school and end up management consulting for McKinsey, yea, you'll make $80k out of school no problem - of course, McKinsey only has 9,000 consultants worldwide. The majority of those jobs do go to top graduates of top schools or to people with connections.If you graduate from a state school with low marks, you'll probably make about $40k working outside of a Big 4.

I respectfully disagree. I don't work for McKinsey and I work for one of the Big 4 (KPMG, PWC, EY, DT) and we are starting non big market (NY, DC, DAL, LAX) staff at the $75K range minimum.

If you graduate from a state school with low marks, you'll probably make about $40k working outside of a Big 4.

If you graduate with low marks, you wouldn't even be interviewed with a Big4, so I have no idea what they pay.

I graduated with a degree in Accounting in 2008 from a state school with high honors. I'm very familiar with the jobs I was offered at that time - none of which paid me more than my job in IT. Including jobs from Price Waterhouse, E&Y and Deloitte. All which involved much longer hours than I'm willing to put in at this point in my career for the amount of money they were willing to pay.

but a Big4 consulting (IT) gig would pay big $$$.

 

[prncess674]

Thanks for the lecture/parenting lesson but I believe I have it covered. My daughter is well aware of what it takes to live day to day and has planned accordingly. And she's getting her Kitchen Aid mixer as a graduation present.

No one is giving you parenting lessons, but just realize that if you mortgage yourself to the hilt and have no retirement savings by sending your daughter to college the only person you are acutally hurting is YOUR DAUGHTER because she will now become your sole life long life support in your old age. I sure hope for your daughter's sake you have planned for yourself because if you didn't you merely become a lifelong dependent in their perfect years.

As someone who speaks from experience. My parents were "selfish" and didn't blow the mortgage and retirement fund on my college education. My last year of college my father went thru a major medical incident and was rendered disabled. He never worked another day in their life. If they had blown the house on my college bills I would be forever be supporting them. Instead, they have a secure retirements, I have long since paid off my school loans and everything is great. Remember you can finance school but you can't fund retirement. As always if you can easily fund both retirement and college ed for the kids than magical for you, but otherwise don't fund the kids only to be a burden on them after school. No one ever expects the worst to happen.