How much do you save for your kids' college?

[tiawolfe]

For those of you who save for your kids' college, how much do you put away? My kids are 5 and 7, and they each get $200 a month put into a 529 account.

We feel proud to be able to do this, but we won't even half of what it will cost for them to go to a public university in our state!

Just curious to hear everyone's thoughts.

 

[ICF]

For those of you who save for your kids' college, how much do you put away? My kids are 5 and 7, and they each get $200 a month put into a 529 account.

We feel proud to be able to do this, but we won't even half of what it will cost for them to go to a public university in our state!

Just curious to hear everyone's thoughts.

Mine are 12 & 9 -- we put about the same in. We have an EFT every month that puts in $150 / kid and then we add extra here and there throughout the year.

In Indiana, you get a 20% tax refund on the 1st 5,000 you contribute (per family) so we always make sure we do at least that much for the year.....so we can get the $1000 refund every spring.

 

[BubMunkeyBles]

We do $100/month right now... It's a start at least. We're hoping to increase it once we pay off some more debt and I get into the workforce at some point ideally.

 

[crisi]

Its varied over the years. Sometimes nothing, sometimes a hundred a month, sometimes much more. And we've also put bonuses and such at it.

But now. Nothing! Its funded. Four years for two kids. They are currently in middle school.

 

[tchrchgo]

I have a 529 for each kid, but also have prepaid tuition here in Illinois, which allowed me to lock in the tuition rate as of the year I bought the plans

 

[mward73]

When DH and I got married (well, it was a while after because I had a renter who was great), I sold my townhouse and invested $50K of the proceeds for DS1's college. DS2 came along a couple of years later and I just started new accounts for each. I have 2 stocks for each and I put $300 in each kid's account per month. My mom adds another $100 to each kid's account (something she wanted to do). I know my mom also has another stock account she set up for each kid, but I don't know how much she invests monthly. The reason the lump sum is separate is so that if they get scholarships or decide not to go to college, that money doesn't have their name on it and we can have it for retirement. The stock accounts are something I want for them and if they don't need it for college, they can use it for a down payment on a house or something.

 

[punkin]

It varies. Currently one is in college and hers is actually fully funded. Unfortunately it is funded partially at the expense of the younger one (just starting high school) We are putting in about $325 per month away for the little one now while still funding 401(k)s and other savings. It's nothing, but we have other assets we can tap when the time comes. I am worried, but not outrageously so.

 

[whatname]

Wow! We put $25/month in DD8 and DD6 accounts. I'm still paying my grad school loans, so this is what we can afford. We put $1000 or so in when we opened them. At least they will have something. Many of our friends don't even have college accounts for their kids. They are all college or grad school graduates but many do not have college funds for their children.

 

[heathrow42]

We are doing our state prepaid - we pay $350/month, and hope to have it completely paid off by the time DD is 5. We had been saving money aside while I was pregnant to cover lost wages during maternity/paternity leave. Well, best laid plans and all.. we had a crazy birth that ended with full medical leave the entire time (and then some!) and then DH's boss wouldn't let him take FMLA. In the end we never touched the money we set aside! A blessing and a curse right? We decided to use it for the downpayment for the college prepaid and then we had a little help from the grandparents.

I know that the state prepaid doesn't cover everything and if she chooses to go to a private there will be a big gap - so we might do a regular 529 investment plan once it's paid off. I like the assurance that regardless of what happens, she can always go to a state school - U Maryland is pretty good. I hope that we'll be able to do the same thing if we ever have another kid.

Here is a college savings calculator: http://www.savingforcollege.com/college-savings-calculator/index.php Not for the faint of heart!

ETA: Check w/ your tax advisor - but many states have a tax deduction/credit for contributions to your state 529/prepaid plans!

--H

 

[Bonniec]

Ill be honest, we paid nothing. Up until the last 2 years, we were not in a position to do it. My kids leave for college this month *sniff*. They got almost all of it done through scholarships. One of them (twins) had to get a small loan. They are going to USF. Im really proud of them for being able to do this on their own.

Hopefully it will be easier for my 1st grader. There are a lot of scholarships out there if you look for them.

 

[tiawolfe]

Wow! Great to see so many people are saving. Without being political, I can't help but feel that something will be done to make college more affordable before my kids go.

 

[BubMunkeyBles]

Ill be honest, we paid nothing. Up until the last 2 years, we were not in a position to do it. My kids leave for college this month *sniff*. They got almost all of it done through scholarships. One of them (twins) had to get a small loan. They are going to USF. Im really proud of them for being able to do this on their own.

Hopefully it will be easier for my 1st grader. There are a lot of scholarships out there if you look for them.

I went to USF. In state tuition is relatively affordable, but has doubled in price since I graduated 4 years ago which is just insane! Plus Bright Futures is an awesome program and doesn't have that high of a GPA requirement.

We have no clue where we'll retire so we're not doing any of the state plans, plus Florida prepaid isn't a good deal at all anymore.

 

[disykat]

We saved more randomly, a bit here and there.

I've been mostly a SAHM, so income I've earned since the time our kids started school has mostly gone towards meeting financial goals above and beyond regular living. I've purchased two years of pre-paid tuition for each of our kids so we can handle the years they are both in school. Our biggest way to save was paying off our mortgage early, right before our oldest started college. That chunk in our monthly budget pretty much covers the cost of one child in school.

 

[CarlisleMom]

We put in $50 a month for DD10 and add anything we get from Upromise. She was left a small 529 when DH's mom died.

Since DH is looking to retire the year before DD goes to college, we decided it's in our best interest to invest the max in our IRA's. Hopefully the lower income will help with financial aid.

You can borrow for college not to retire.

 

[tnmt]

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.

 

[carrie1626]

To the OP:

You're saving money already and your children are still pretty young.
That's a good thing.

I started saving seriously for mine when the oldest started HS. I told both of my kids: ( now both in college)

"you get the first 2 years on me, then it's your financial respondsibilty".

I only know of one young person who had a complete free ride, and her father makes a considerable and very generous salary.

 

[okw2012]

We gave each kid 1000$ when they were twelve. Then told them I would double whatever they saved until they were 18. Our government adds 20% on top of that. My oldest is now 17 and has well over 10k$, and is definitely more a saver than a spender. She feels she earned the whole 10k$ and that's all right

 

[Bonniec]

I went to USF. In state tuition is relatively affordable, but has doubled in price since I graduated 4 years ago which is just insane! Plus Bright Futures is an awesome program and doesn't have that high of a GPA requirement.

Bright Futures made a big difference for them. My son got the top tier and my daughter second which really helped.

 

[abcboys]

Such a small amount I'm almost embarrassed to admit it but since none of you know me I'll say $2/week per kid is automatically put in their savings account plus an extra $2/out of DH bi-montly paycheck so...$12/month? I guess its better than nothing...may help pay for some books...

 

[lillygator]

I went to USF. In state tuition is relatively affordable, but has doubled in price since I graduated 4 years ago which is just insane! Plus Bright Futures is an awesome program and doesn't have that high of a GPA requirement.

We have no clue where we'll retire so we're not doing any of the state plans, plus Florida prepaid isn't a good deal at all anymore.

omg re the fl prepaid...

my 2 eldest have it, 4 yrs univ. 1 $9k, 2 14k, they are 9 and 7 so purchased in thier birth yr. our baby, ---it is around $40k!!!!!!!! insane!! $907.90 a month for the 5 yr payoff!!!!!!!!!!!!!!!!!!!!!!!!!!!!!