How much do you save for your kids' college?

[crisi]

That's what I was thinking. My parents paid my college tuition, I had no student loans. My dad worked a lot of OT. On the flip side, my husband's parents paid nothing. My husband does not want to put our children in that situation. We put $300.00 every 2 weeks into various accounts and have for the past ten years. If they excel and want to go past the 4 year, we will support them. I worked during college and paid my room and board as well as my car insurance. I am confident that if I could not pay those bills, my mom and dad would have had me covered. I am forever grateful and I would not hesitate to support them if they needed it. You can pay for your children's education and still raise them to become responsible adults.

My parents paid for three to go to college. Not one of us has lived at home since the day we left home for the dorms.

My aunt and uncle put three through college, not one of them lived at home post college, and two of them are now millionaires.

On the other hand, my husband went through college with student loans (there was no way his mother could afford school and he father was absent), and spent ten years digging himself out of the hole student loans put him into. Where I bought my first house at 21, at 21 he was renting an apartment in a crack house to be able to afford his student loan payments. We don't want our kids to move back home - which is why we are making sure that they leave school without obligations so that they can rent a crappy apartment (but not one in a crack house) off the money they make delivering pizza if they need to.

 

[HeyIt'sMe]

I was very lucky and my parents paid for my college education; DH's parents also paid for his college education. We have one DD and she is a sophomore in HS so college is not far off. We will be paying for her college education.

As for OP's question, we currently put $600/month into our DD's 529 plan. We didn't always put in that much but over the years as our salaries have increased we've increased the deposit amounts.

 

[Patience]

It has varied over the years but I would say on average about $500 per month. Our oldest daughter starts college in a week and we are fully funded for her. She is attending a 4 year, in-state public university that actually costs a bit less than I was expecting to pay. Our youngest daughter is 5 and just started Kindergarten. We will pay for both girls to attend college as we do not want them to graduate in debt.

 

[KandiB47]

I'm glad to read we are on par with what a lot of others are doing. I felt like I was underfunding the 529. If you go by the savings calculators, I certainly am.

I started the 529 when DS6 was born. We put $400 a month in the 529 most months. It has $17,000 in the account right now. It's a good start. We live very close to a large university so I hope DS will decide to live with us for the first two years of college and save some money on room and board. We have twelve years to figure it out.

 

[MomToOne]

We live very close to a large university so I hope DS will decide to live with us for the first two years of college and save some money on room and board. We have twelve years to figure it out.

I think that's something many people don't think about. If you are within daily driving distance of a university, or your state has a strong community college system like mine does where you can do most of the first 2 years at a MUCH cheaper rate, then paying for your child's college education does not need to be as traumatic as some of the calculators make out. I know in a very few key fields, the university you go to can make or break your career, but that's not true for most. Going to an Ivy League or even just a "cooler" out of state school isn't justified in many cases. And that's a discussion we need to have with our kids - paying for my daughter's college education doesn't mean she gets to go wherever she wants. In our case, we have 2 very good state universities within daily driving distance, and there's a community college less than a mile down the road. If she picks most majors, I will pay for her tuition to one of those 2 universities along with books and all the general fees, but I won't pay room and board - she will be expected to live at home through college. And unless she has a good reason, I will expect her to go to the community college first to get the basics out of the way. Is it the "funnest" way to go to school? Nope. Is it the financially responsible way? You betcha.

 

[cornflake]

Wow - so just because parents pay for college, you think the kids will be moochers all their lives???? Glad my parents didn't think that way - they paid for all 5 of us to go to college, 2 even to graduate school. Some of us graduated with degrees that would be considered to have a good job outlooks, others didn't. But we all got jobs - in our field or not - right after college and moved out. Even my brother with the worst job outlook (Bachelors in Zoology anyone??) got temporary jobs until he found a job in his field.

You can teach your children to be responsible, while still giving them a leg up with a college education. In fact, it's much easier for children to be responsible and get started out on their own when they don't have huge student loans hanging around their necks. That's why lots of kids have had to move home - making it with temporary jobs isn't enough to cover their student loans. If they didn't have those, they might be able to make it on their own!

And yes, had my parents needed several hundreds a month at 60, I would have paid it. Just as my father actually did for his parents once they were older. But my father saved for retirement, just as he did our college - and as part of teaching us how to be responsible, taught us to do the same. We wore hand me downs, didn't go on grand vacations and didn't live in a huge house (we kids actually shared bedrooms - the shame!) - we lived a life many would consider to be "below our means" today, so that he could save for retirement and college. That example was the best teaching I could ever have in life. And I model that same behavior now for my daughter, so she will be able to make it on her own one day as well, even though I plan to pay completely for her college education.

Seriously!!

I don't think this has any bearing on attitude. I know some people are of the 'pay for your own college' and if that's how you roll, . There are also plenty of people who can't afford to pick up the tab.

However, most everyone I knew as a kid had parents who saw college as an extension of the general education they wanted to provide. Some paid outright, some cosigned or absorbed loans, but mostly the message was 'you worry about working hard enough to get into a good school, not how to pay for it.'

I don't think not having to get a job for the money means a kid didn't work for it and won't appreciate it. They work for it - they have to get the grades, the scores, the essays, etc.

 

[aprilgail2]

Nothing, can't afford to. They want to go then they have to earn scholarships and with the lottery scholarship they can go free, if they choose to keep up their grades and earn it. they appreciate it more if they earn it, I think.

Wow - so just because parents pay for college, you think the kids will be moochers all their lives???? Glad my parents didn't think that way - they paid for all 5 of us to go to college, 2 even to graduate school. .

That is just an exuse people give themselves to justify to themselves when they can't or won't help their child pay for college. If you can't or won't -then whatever-but no need to try to make the people who can afford to put something away towards it feel like their kids won't appreciate it or will be moochers!

Right now I put 50 a week in a 529 and my brother (teacher, no kids not married) puts away 75 a week in a 529 for her.

 

[aprilgail2]

I hope those who can afford hundreds a month per kid from birth on, are also doing the same for their own retirement or to get out of debt. From a financial planning point of you, you need to be selfish and put yourself first here. Our kids have the benefit of time, we dont.



You think your kids will be giving you a couple hundred a month at 60, when you need it???

I have a company paid pension that I will be collecting in just over 9 months when I hit age 50- I also retire with full medical coverage and have a nice size 457 on the side.
I happen to supplement my mothers income each month by a few hundred too since my father died young and his pension was very small.

 

[punkin]

That is just an exuse people give themselves to justify to themselves when they can't or won't help their child pay for college. If you can't or won't -then whatever-but no need to try to make the people who can afford to put something away towards it feel like their kids won't appreciate it or will be moochers!

Right now I put 50 a week in a 529 and my brother (teacher, no kids not married) puts away 75 a week in a 529 for her.

There is a huge difference between can't and won't in this case. Many people just can't and there are no excuses necessary for that. My mother would have loved to help me more when I went to college but she just COULD NOT. However, there are those that won't help, and in some cases actually hinder their children's ability to go to college. That is the attitude I do not understand.

 

[DOREEN1779]

There is a huge difference between can't and won't in this case. Many people just can't and there are no excuses necessary for that. My mother would have loved to help me more when I went to college but she just COULD NOT. However, there are those that won't help, and in some cases actually hinder their children's ability to go to college. That is the attitude I do not understand.

I agree. In my husband's situation, it was would not. They had the money, but with a family of five, they made choices like buying a two-seater sports-car as their second car. Things like that. They did not save it for retirement, they spent it. They wrote the handbook on what not to do with a paycheck.

 

[mad madam mim78]

Nothing. Maybe later on will try to help a little. Getting out of my own debt and saving for retirement is first. I put myself through college with my own hard work and so did hubby. If they want it bad enough, they'll get there mostly on their own two feet. I tried harder, appreciated where my money went, and felt so good when I made my school payment with my own money, and had no loans.

I will help with what I can when the time comes.

 

[QVCshopper]

How much do you consider "fully funded"? There's a big difference between a state school and private. Unless you're doing a prepaid plan, I guess you just don't know how much you'll need. I don't really trust those calculators.

We were shooting for $100k per kid, but I honestly don't think it's possible now that we have three kids. One, sure, we're over 50% of the way there and the oldest is just 7. But three? I'm doubtful. We do $150 per kid a month and $2k a year into an ESA for the older two, plus we have a cc that gives 2% back on all purchases into a 529.

And yes, we max out our Roth and 401k. No mortgage, though, so that is the only way we can save so much. And even then I don't think we can save enough.

I put myself through college. It was very very hard. But in the end, my DH and I went to the same school and I graduated with only $16k in loans, while I'm pretty sure his dad paid much much much more.

 

[punkin]

How much do you consider "fully funded"? There's a big difference between a state school and private. Unless you're doing a prepaid plan, I guess you just don't know how much you'll need. I don't really trust those calculators.

We were shooting for $100k per kid, but I honestly don't think it's possible now that we have three kids. One, sure, we're over 50% of the way there and the oldest is just 7. But three? I'm doubtful. We do $150 per kid a month and $2k a year into an ESA for the older two, plus we have a cc that gives 2% back on all purchases into a 529.

And yes, we max out our Roth and 401k. No mortgage, though, so that is the only way we can save so much. And even then I don't think we can save enough.

I put myself through college. It was very very hard. But in the end, my DH and I went to the same school and I graduated with only $16k in loans, while I'm pretty sure his dad paid much much much more.

That's a problem if you have little children and are just starting out. I really thought at one time, that I had enough money to fund two college educations, but market reverses and horrendous tuition increases over the past 20 years (older DD is almost 20) have put my well laid plains into serious disarray.

Since my children are older now and one is in the middle of college (junior year starts next month) I can now say that I would feel their college educations fully funded if I had another $75K for the older and $250K for the younger. I do not have the nearly the money I need for DD13 and she will start college in 4 years.

Of course it is possible DD13 will choose a cheaper option than her sister did or get more scholarships (or actually go to a school where scholarships were offered) but I would like to give her the same freedom of choice I was able to give her sister.

 

[IUTBAM]

We didn't save any money for our daughter's college education, but she will graduate debt-free, including vet school if she chooses to go that route.

We encouraged her to work hard and study in HS, and she graduated valedictorian with scholarships from every school she was accepted to (six in all), as well as a National Merit Scholarship. Consequently, what is not covered by her scholarships will be covered by us. We are in a much better position financially now than we were when she was young, and paying college tuition every semester is not an issue.

College can be affordable, if your child makes affordable choices. Our DD chose to live at home and commute. We pay out of pocket about $1,000 per semester (maximum, including books which usually accounts for about half of that amount) for her undergraduate education, thanks to her scholarships, and the fact that we aren't paying $15,000 a year for room and board. It's all in what the priorities are. She is focused on getting a great education, and while she does have a social life, her interest in college is on how it's going to prepare her academically for her future. For her, it's not about "going away to college", living in a dorm, or being a typical college student. It's about getting an education, period. Sorry to go on and on, but I get so tired of hearing about how college is so expensive...it doesn't have to be.

 

[sk!mom]

Sorry to go on and on, but I get so tired of hearing about how college is so expensive...it doesn't have to be.

You may not like to hear it but college is crazy expensive. Not everyone lives near a University.

 

[Ginny Favers]

I've been saving for DD6 and DD3 since birth. We put in only $100 a month for each of them, plus they get small gifts from their grandparents twice a year, which we add in. Right now, I think we have the equivalent of a year's tuition (state school) saved up for the oldest one. I'm actually surprised at how quickly it added up. I'm hoping it'll be able to fund a good portion of it by the time they're ready to go.

 

[punkin]

You may not like to hear it but college is crazy expensive. Not everyone lives near a University.

...and not everyone has a valedictorian on massive scholarship either.

 

[LisaR]

We didn't save any money for our daughter's college education, but she will graduate debt-free, including vet school if she chooses to go that route.

We encouraged her to work hard and study in HS, and she graduated valedictorian with scholarships from every school she was accepted to (six in all), as well as a National Merit Scholarship. Consequently, what is not covered by her scholarships will be covered by us. We are in a much better position financially now than we were when she was young, and paying college tuition every semester is not an issue.

College can be affordable, if your child makes affordable choices. Our DD chose to live at home and commute. We pay out of pocket about $1,000 per semester (maximum, including books which usually accounts for about half of that amount) for her undergraduate education, thanks to her scholarships, and the fact that we aren't paying $15,000 a year for room and board. It's all in what the priorities are. She is focused on getting a great education, and while she does have a social life, her interest in college is on how it's going to prepare her academically for her future. For her, it's not about "going away to college", living in a dorm, or being a typical college student. It's about getting an education, period. Sorry to go on and on, but I get so tired of hearing about how college is so expensive...it doesn't have to be.

Do you honestly believe everyone has a college right around the corner from them that they can commute to and that also offers their major of choice?

I was THRILLED to find a major university just an hour from us when we first moved here. It offers every major one could want! DD had planned on commuting there, plus she is getting her AA before she graduates HS so we were saving tons. It wasn't until about 6 months ago that we were talking to someone about that university and found out how overcrowded it is. Her upper level classes in her major would have 200 - 400 people in every class. While I expect that for general ed classes, no way is that acceptable in my book for upper level classes. All of those classes are taught by TA's. Quality of education is our number one priority and DD would not get that at this university (in her major) after researching it more. Guess what that means? Commuting is out of the picture now. The next closest college is 2.5 hours away which makes commuting impossible.

While scholarships are wonderful and we hope DD gets some this spring, they aren't a guarantee. She has done all the right things but it still doesn't mean she will get tons of money thrown at her.

I'm glad you aren't finding it expensive but I am guessing you are in the minority.

 

[SC Minnie]

We did a prepaid tuition starting when DD was 4. That ~$250/month for 13 yrs was best thing we ever did. She starts college in a few weeks and her tuition is done. We had told her all through middle and HS that for anything outside of tuition she either needed scholarships or loans. Thankfully she got a scholarship that is covering all but ~$1000 of the rest of her cost of attendence. DH and I will take care of that for her.
.

 

[Ariel on Land]

$150/month per kid. Thankfully we'll have the GI bill to pass on to one of them, and as long as the law doesn't change in our home state, another kid can have state tuition covered too, thanks to DH's military service. So hopefully with those two programs plus what we put aside, we'll be able to cover college without too much pain. (Of course, if they choose to go to our rival school then we'll be able to retire nicely!! )