How much do you save for your kids' college?

[BubMunkeyBles]

If your kid wants to live on campus and is willing to pay for to, why the requirement to live at home? It seems to me you are getting off cheap by getting that 50% discount - why not let your kids live on campus?

And finally, if you think there are lots of jobs out there that pay $80,000+ with a high school degree, then by all means prepare your child for that path. Again, those of us who have a more realistic view of what the working world is like want our kids to be as competitive as possible, in case those $80,000 jobs with no college degree dry up.

I agree. I must be an oddball, but I really don't want my 20 year old living at home. I learned so much by moving away for college, living on campus, being homesick and learning to be on my own. It's a priceless experience in my opinion.

I will say my husband makes good money now and doesn't need any college... but he's in the military (not the right move for a LOT of people) and he has 16 years in almost. The fresh guys make a lot less but at least they have a roof over their heads, food, medical, and a paycheck on top of it all I guess. He's also gotten all his schooling paid for without using his GI Bill (TA through the Air Force). He has a bachelors and is almost done with his masters and we still have his GI bill to split between the kids and I. But I also understand the military isn't for a lot of people and a lot of people don't qualify either. But it's been a good life for my DH.

 

[luv2mickey]

We've had this discussion many, many times before on the DIS and the consensus is that you'll only have an entitled kid if you raised one. Plenty of us are paying for a full ride and have raised successful, talented and appreciative students who graduted debt free in four years and went on to work in successful careers and become solid members of society. It's really insulting to those of us who don't have spoiled entitled students when you say things like this. It just makes us think you are using it as an excuse for why you didn't pay for your kid.

If your kid wants to live on campus and is willing to pay for to, why the requirement to live at home? It seems to me you are getting off cheap by getting that 50% discount - why not let your kids live on campus?

And finally, if you think there are lots of jobs out there that pay $80,000+ with a high school degree, then by all means prepare your child for that path. Again, those of us who have a more realistic view of what the working world is like want our kids to be as competitive as possible, in case those $80,000 jobs with no college degree dry up.[/QUOTE]

 

[DawnM]

Sigh. I am wrong again......silly me.

Dawn, you are wrong. You did not appreciate your parents paying for college! After all, someone's husband works at a college and said so, and someone heard a caller to a radio show say so!

 

[sk!mom]

Biggest take away from this thread seems to be that the amount you need to save depends on how you view college. Some want their kids to be able to go to the best fit University regardless of cost, others only want to pay for public, some want their kids to live at home, and still others want them to do 2 years at a CC first.

I'll agree that there are many ways to make college happen and some are less expensive than others but they're all expensive and there are no guarantees of financial aid.

We want DD16 to be able to go to the best fit University regardless of cost. I'm glad to see that others plan to cashflow as much of the cost as possible. One of the benefits of being debt free is a higher disposable income. We plan to use it for college for 4 years. Savings will be used above that. The private she loves gives generous merit aid. If she gets in there and qualifies, then the cost will be comparable to her top public choice where she's very unlikely to receive any aid.

 

[MomToOne]

A university student called in and said there is a huge difference in students who have their education paid for by their parents, college to a lot of them is a party experience; compared to those who pay their own way, *loans which have to be paid back or working while going to school.

Gee...let me guess...the student who called in was paying their own way, right?

I can show you kids that take out gobs of student loans because their parents have saved nothing and still feel plenty "entitled". And I can show you kids whose parents are paying for college that don't.

Kids don't feel entitled because their parents pay for their college. They feel entitled because their parents have taught them to be that way during the first 18 years of their life.

 

[tinker&belle]

We plan on saving their nursery school tuition amount monthly (around $225 a month apiece) once they are finished with nursery school. We hope to increase this amount as DH's salary increases and as I work more as they get older. This seems like a painless way to start saving once they finish nursery school since that is money we are used to paying already.

We also will pay off our house the semester our first daughter goes to college so that should give us some extra money toward tuition.

 

[luv2mickey]

I think the argument that says they will value their education if they pay for it is only valid if the student works and saves the money then pays tuition, not taking student loans, they don't respect the cost of the education because it feels free. They are the kids who whine later when they have to pay them back.

We are paying cash for our kids who are in college now, they respect the cost because they watch how hard we work to make sure they graduate without student loan debt. They work all summer and save for their spending money. We have talked about money and debt their whole lives so they get that this a gift and they repay us with great grades and therefore they maintain their scholarships.

Back to topic, save what you can but most important position yourself financially so you can cash flow if you have to, then if you don't need the money just more for retirement.

 

[crisi]

Kids don't feel entitled because their parents pay for their college. They feel entitled because their parents have taught them to be that way during the first 18 years of their life.

Some of them just seem born that way despite what their parents do or don't do. Others can have their parents hand them everything on a platter, and end up being generous, grateful, hard working people. It isn't nature or nurture, pick one - both weigh in.

 

[DOREEN1779]

My friend took a job a few years ago at a private college in our area. It is a very good college and always top rated. She works in the cafeteria. Her kids get 90% off tuition! I considered getting a job there myself just for the great deal on tuition. Unfortunately, neither of my kids want to go there.

Same at Rutgers. My SIL father worked there and was able to send all five of his children for a pretty sweet deal!

 

[nikkistevej]

We do $100 a month in a 529 plan, have had it for a few years. DD is 9, we also do the Gerber college plan is is $73 a month.

 

[LisaR]

She isn't on a massive valedictorian scholarship. We pay for what her scholarships don't cover, but because she made the frugal choice to live at home, we don't have room and board to pay for.

And I realize not everyone lives near major universities like we do, but the fact remains, there are affordable options for college. No matter where you live it doesn't have to cost $20K (or more) a year. There are options.

So you realize that everyone isn't capable of commuting due to distance yet you feel that NO MATTER WHERE YOU LIVE, it doesn't have to cost $20K+ a year. Have you priced out every college out there? Do you honestly think tuition, fees, room & board can not easily equal $20K in many schools around the country?

 

[LisaR]

We don't save a ton, only $50 per month per child, but each of my kids was gifted a pre-paid tuition contract from a generous relative years ago so as long as they attend a state school they'll be starting out in a good position.

At this point, I believe DS14 will go the community college/vocational route so what we have saved will be more than sufficient. I worry more about DD10 because she's extremely bright, academically-focused, very involved in a number of sports/activities, and might be more interested in private or out-of-state universities, but she'll make her choice knowing what we're able to pay for and knowing the rest is up to her. DD4 is just too soon to tell, but we'll steer her towards state schools same as the others and caution very strongly against taking out large loans to go elsewhere.

You're in Michigan and your DD gets a choice of private or out of state???

GO BLUE!

Is there really any other choice for her?

 

[momof2gr8kids]

We put $75/month into an RESP for each child. That's all we can afford for now.

We've let both kids know from an early age that we will help out, but they also have to contribute towards it, by saving money and working hard and hopefully getting some scholarships. My dd 11 has a small job (not a "real" job, but she gets $30 / week for helping at my office lol). She keeps half and puts the other half away.

Neither dh nor I had any help whatsoever from our parents. So dh did not go to college (was on his own since 17), and I chose a different course as I was afraid to spend the $$ or have a huge debt load afterwards.

I don't want my kids not being able to do what they will excell in because they can't afford it. Unfortunately, due to the choices we made, we don't have that high income to totally fund them. But we will be able to help out.
Even if we could pay for everything, we wouldn't. I think it's good for kids to earn their money and help contribute to the cost of their post secondary education.

 

[HM]

We started with $100 a month/ea into a 529 and worked it up to $300/ea. Unfortunately for us, the downturn in the market several years ago took a huge piece out of our investment. We are barely over what we've actually put in ourselves over time. So no real help from investing it. If we'd put it in a bank account, we'd actually have more money now. We've saved enough for a bit more than two years worth of state tuition/room/board for our kids. One is in college now and the other goes next year. We are still investing.

 

[Colleen27]

You're in Michigan and your DD gets a choice of private or out of state???

GO BLUE!

Is there really any other choice for her?

Well, DH doesn't think so...

I'm not sure how she'll feel about the size of a big public university like U of M... Their incoming freshman class is four times the size of our entire town! Maybe that will appeal to her, maybe not, but she's a 'pleaser' personality and I want her to make her own decision so I'm playing neutral on the issue.

She does love Ann Arbor, though.

 

[Qwackertoo]

We lost 1/3 of the value of both our kids college funds in '08. They are back to previous levels without additional contributions. They were in 9th and 6th grade when this happened. DD just graduated and with her ACT score received tuition paid scholarship and a few other small amounts so all have to pay is residence, dining plan and books. Probably use any of her leftover funds for son who doesn't work on his studies quite as much.

So best laid plans don't always work out like you think. We had their funds well on the way when '08 hit and instead of gaining almost 20% per year like we had been experiencing . . . we were digging ourselves back up just to get back to where we were and some treading water along the way with the balances in the accounts.

 

[punkin]

Well, DH doesn't think so...

I'm not sure how she'll feel about the size of a big public university like U of M... Their incoming freshman class is four times the size of our entire town! Maybe that will appeal to her, maybe not, but she's a 'pleaser' personality and I want her to make her own decision so I'm playing neutral on the issue.

She does love Ann Arbor, though.

DD absolutely refused to go to Maryland (a very decent school) for that very reason. She wanted a small Liberal Arts college.

We lost 1/3 of the value of both our kids college funds in '08. They are back to previous levels without additional contributions. They were in 9th and 6th grade when this happened. DD just graduated and with her ACT score received tuition paid scholarship and a few other small amounts so all have to pay is residence, dining plan and books. Probably use any of her leftover funds for son who doesn't work on his studies quite as much.

So best laid plans don't always work out like you think. We had their funds well on the way when '08 hit and instead of gaining almost 20% per year like we had been experiencing . . . we were digging ourselves back up just to get back to where we were and some treading water along the way with the balances in the accounts.

Yes, we lost money then too, but we had to pull funds before 2010 when DD went to school, so we did not have quite the recovery you did.

 

[crisi]

We lost 1/3 of the value of both our kids college funds in '08. They are back to previous levels without additional contributions. They were in 9th and 6th grade when this happened. DD just graduated and with her ACT score received tuition paid scholarship and a few other small amounts so all have to pay is residence, dining plan and books. Probably use any of her leftover funds for son who doesn't work on his studies quite as much.

So best laid plans don't always work out like you think. We had their funds well on the way when '08 hit and instead of gaining almost 20% per year like we had been experiencing . . . we were digging ourselves back up just to get back to where we were and some treading water along the way with the balances in the accounts.

That's one of the reasons why we front loaded our savings so heavily. With my son going into eighth grade and my daughter in seventh, they are saved for. But that doesn't mean we'll start spending the money we were setting aside like drunken sailors. We'll keep investing, just not in funds earmarked for college. If the market goes down, we should still be able to afford college without loans, just not early retirement.

 

[meggiebeth]

It's so interesting to hear how Many Americans save up for their kids to go to college. I will sadly never have that. I am 15 and heading to college in 3 years. We have nothing saved and fees are now £9000 a year So I will just have to take out a student loan, along with my brothers, although my parents will try hard to help us by giving what they can spare

College/ university is now going to be a minimum of £81,000 for all three of us. Ouch. Funny though how in Scotland it is all free! Since I am half Scottish I do have the option to move up there and live with my grandma and get free education, but I'm just not sure yet.

 

[Dopey420]

We put $100 each, per month in a 529 and $185 each, per month in a pre-paid tuition plan (yes we were very lucky to get in a tuition program that froze college tuition at state colleges at 1997 levels, the year we started!) for our two kids. It is tough, but easier than coming up with all that money when they start college.

So we put away about $575/month and that STILL won't be enough. I don't know what my friends who have not saved for college are going to do