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

[lucigo]

I just wanted to add also, that my husband retired from the military in 2003, and went to college for the next 5 years courtesy of VA Voc Rehab. He is now working as a middle school teacher. They paid for everything, tuition, books, supplies, and a monthly stipend.

 

[iheartjacksparrow]

Check into transfer scholarships. I wish I had known to do this as it could have saved me a ton. I did still get one for a year but a friend transfered to a different college and half of her tuition is covered by the transfer scholarship for the time she is at the university.

Thank you! I really haven't looked into as much as I should be, but this definetly motivated me to do so. It would be very helpful if I could get some schoarships. Thank you for the great advice!

 

[iheartjacksparrow]

That's yet another solution that we have up our sleeve! DH has talked about teaching "some day" at the University level... it may happen, it may not, but still a possibility. That's up to him though.... I've not had that particular "calling"

DO IT! My dad works at my college, so I get my community college for free until I decide to transfer! It's helped me out in soooo many ways!

 

[jmpellet]

Both hubby and I work at community colleges and both states cover tuition. Smaller privates are a better deal as many are in a network that allows dependents the ability to go to hundreds of colleges across the country. Some even include room and board.

 

[Colleen27]

We put away between $50 and $100 per month per kid, plus they save some of their cash gifts, but that isn't their only college savings. My inlaws bought them pre-paid tuition contracts so we're basically saving for room & board and/or to make up the difference if they choose a private school. We don't have it in college-specific accounts because of the possibility that it won't be needed when the time comes; we lose the tax advantages now, but that doesn't matter much in our income bracket and I'd rather have the freedom to give it to the kids for other purposes like a down payment or a wedding later if they don't need it for school.

I would really prefer they not have to take out loans, but that's my experience coloring my opinions - I passed on an acceptance to my dream school and ended up at a school I really ended up disliking because the former would have required substantial (terrifying) debt and the latter offered a great aid package. I want my kids to be able to choose their college path based on major, school environment, etc. rather than just "following the money".

 

[Colleen27]

Unfortunately, there are MANY people out there right now with College degrees and no job. Or, low paying jobs. Just think of how it might be by the time our kids are grown. A LOT can change it 12 years! If EVERYONE is focusing on College now, then, theoretically, they aren't going to be as valuable in the future. People should start thinking outside the box and encourage their kids to pick up special skills while they are young; like foreign languages (NOT Spanish), military training, etc. Just a thought There are SO MANY different jobs out there than the average lawyer, doctor, accountant, teacher, engineer, nurse stuff that most people ar going out for these days.

That's the thing that holds me back from going all out in savings earmarked specifically for college. Not only are the kids too young to know what path will suit them, it is still too far off to know what kinds of job market they'll be graduating into. I'm not a fan of the "one size fits all" everyone needs college approach that is currently in favor; it drives down the value of popular/common degrees and glosses over the non-degree paths to marketable jobs skills. And as much as I want my kids to follow their interests/passions, I'd have an awfully hard time paying for a 100K degree that doesn't have a reasonably high probability of commanding a decent salary.

 

[ohlas]

Well I havent read it yet but if you have girls you could aways get them to sign up for the airforce, my sister did and she got free BA in computers out of it for 4 years of service..just something to think about, if you cannt pay for college....

 

[lillygator]

my 7 yr old has the FL prepaid 4 yr University plan and it's paid for, so she is getting $50 amonth in a 529 plan. My 5 year old also has the 4 yr Univ plan, but I have a yr and a half left to pay over $200 a month and she also gets $50 a month in the 529 plan. Once hers is paid off, I will bump up the 529 contributions.

 

[crisi]

That's the thing that holds me back from going all out in savings earmarked specifically for college. Not only are the kids too young to know what path will suit them, it is still too far off to know what kinds of job market they'll be graduating into. I'm not a fan of the "one size fits all" everyone needs college approach that is currently in favor; it drives down the value of popular/common degrees and glosses over the non-degree paths to marketable jobs skills. And as much as I want my kids to follow their interests/passions, I'd have an awfully hard time paying for a 100K degree that doesn't have a reasonably high probability of commanding a decent salary.

With a 529 if you decide to use if for something other than education, you just pay normal taxes on it (instead of the gain being tax free). There isn't much of a risk.

So you have a kid who doesn't want college, you can use his fund for whatever you see fit. It isn't his property, its yours. So you want to buy a retirement home, or see Europe, or whatever with your kid's college fund, or send him to tech school, or use it for a down payment for a house when he marries, or send your other kid to medical school with it, or set it aside and see if in five years he has maturity to go to college, or keep it for your grandkid's educations. Or bits and pieces of all the above. Up to you.

If you don't set anything aside (whether its earmarked for college or just set aside with the informal intention that its for college or retirement or ..... but maybe college) most people can't come up with tuition type money if the promise of scholarships falls through or the school tells you that as parents your share is $$$$ for a bright, responsible kid.

 

[Trishtack]

We have one DD who is 4 1/2. She goes to a private pre-school and we pay around $1k a month. Once she enters 1st grade, we will save the $907 a month for primary, secondary and post-secondary expenses. We were saving in a general fund for education and retirement but my DH was paralyzed in 08 and we depleted our basic savings. We own three homes with no mortgages. We lease two now. We hope to sell those homes to fund education and retirement in addition to future savings and 401ks.

I have worked since I was 12 and went to undergrad on full scholarship but I had to work 10 hours (I worked 15 so I could send money home) as part of the scholarship. I don't think I had $10 the day I arrived at my undergrad college dorm and I went without many basic things for a very long time. I went to grad school on an assistantship and loans.

On the otherhand, my DH had his entire undergrad and grad paid for by his parents. 2 yrs at a CC and 4 yrs at a state school. Funny that he doesn't believe in paying for everything and I do and yet we received exactly the opposite.

I intent to fund our DD's education right down to the last pencil. My hope for her is undergrad then grad or professional school. And my hope is that she will go to an excellent, top-rated, private school. After graduation and a full time job I hope to gift her with a 20% dp on a home. All string free other than she follow her passion and give it her all.

Working during college is hard and can be devastating when you have to choose between work or studying. I don't want that for her. In addition, no working during summers in high school. She'll have 40 yrs to work later.

I am an educator and I work three professional jobs so I can provide for my family. That is my responsibility that I have assigned myself. It works for me but certainly isn't what I expect of anyone else. I promised that before we made a decision to be parents. I've lived a life of loans and working while trying to get an education. I hope to offer something better than what I had to my DD. I understand the value of building work ethic but in mind there is 40 more years for that.

 

[Colleen27]

With a 529 if you decide to use if for something other than education, you just pay normal taxes on it (instead of the gain being tax free). There isn't much of a risk.

So you have a kid who doesn't want college, you can use his fund for whatever you see fit. It isn't his property, its yours. So you want to buy a retirement home, or see Europe, or whatever with your kid's college fund, or send him to tech school, or use it for a down payment for a house when he marries, or send your other kid to medical school with it, or set it aside and see if in five years he has maturity to go to college, or keep it for your grandkid's educations. Or bits and pieces of all the above. Up to you.

If you don't set anything aside (whether its earmarked for college or just set aside with the informal intention that its for college or retirement or ..... but maybe college) most people can't come up with tuition type money if the promise of scholarships falls through or the school tells you that as parents your share is $$$$ for a bright, responsible kid.

Thank you for clarifying that. I obviously haven't done as much homework on college funds as retirement; I assumed there was a penalty aside from the basic tax liability if you cashed out a tax-advantaged college fund for non-educational purposes.

Right now, we're saving in a combination of low-to-moderate risk mutual funds and no-risk long term CDs and I'm comfortable with that. The tax advantages/consequences of designated college accounts haven't been a huge factor in our planning because we have a modest income and little income tax liability anyway. I wouldn't dream of not saving at all - the amount of debt I'd have accrued is why I didn't go to my "dream" college and I don't want my kids put in that position.