The $1500 a month number SJ threw out is making me sick to my stomach. We cannot save $5000 a month for college. The bubble really does have to burst, right???
The $1500 a month number SJ threw out is making me sick to my stomach. We cannot save $5000 a month for college. The bubble really does have to burst, right???
I think so.
But cash flow is a big piece as you are already paying private school x3 x12. That cannot be ignored!
And I am saving nowhere near $1500/month to be clear. Maybe it was a mistake to post that calculator.
Re: the soaring price of college costs, there has been much in the media that few students at these expensive universities and colleges pay actual list price (the "tuition discount rate"). The latest estimate is that the average discount for freshmen at private colleges is 46 percent (www.washingtonpost.com/news/grade-point/wp/2015/03/02/just-how-high-can-college-tuition-go/). This is problematic on many levels (who gets what discount, why have such high sticker price to begin with, etc., etc.) but it reassures me *somewhat*. That said, my H and I in no way expect to be able to save enough right now to fund $60K/year for a private college for two children. We are still paying my H's six-figure law school loans and we are prioritizing that, plus our own retirement. In addition, we pay more than $30k/year for daycare right now (for just one child) so throwing cash at college won't feel so horrendous when the time comes. We'll figure something out.
Last I checked DS had $15k in his 529 but I will confess I have never put I anything into it. My FIL has a goal of sending all 5 grandchildren to the college of their choice. It is an amazing gift. He funds at Christmas, birthday, and if our family mineral rights pays out well.
I know DD has one started with a significant contribution at birth but we haven't received a statement for either lately.
SIL is the administrator for all 5 grandchildren because she lives in Virginia and they had the plans and tax benefits of the states our family resides in.
Once we have our house project paid off we will likely contribute the cost of our mortgage to their 529s.
I do sometimes laugh at myself for scolding Social Security preppers, then turning around and saving for college assuming that college costs devour everything. Some of is driven by our somewhat weird financial situation, but a lot of it is probably paranoia
Were you scolding me? I was a little confused by your post. Not confused by the information, but more how it pertained to me. I thought maybe you were confusing me for someone else.
Oh, I wasn't scolding you, your situation is a little unusual (especially on MM with lots of working parents). Since you mentioned that you won't get anything because you SAH, I was pointing out that if your spouse dies you can continue to collect an amount equal to or close to their retirement benefits. This isn't exactly well known (in fact, I wasn't sure it was true until I looked it up. I mean it makes sense since SS was created in the 1930s when very few women were in the workforce at all, but I still had to check).
I was scolding/am depressed by the 80% of otherwise financially literate MMM that doesn't use SS in their retirement planning because it's "going bankrupt" or whatever.
The $1500 a month number SJ threw out is making me sick to my stomach. We cannot save $5000 a month for college. The bubble really does have to burst, right???
Well fwiw when I do the calculator for my 7 yo (pegged to a 65k school, inputting the # we already have put away for him, assuming 4% inflation - which might be low, idk - and 6% growth) I get a number that is just under 1k a month. But yes that # freaked me out too. And I do think this whole thing is breathtaking and verging on outright insane but I don't know what the alternative is. I really want to give them a traditional 4 yr liberal arts experience.
Re: the soaring price of college costs, there has been much in the media that few students at these expensive universities and colleges pay actual list price (the "tuition discount rate"). The latest estimate is that the average discount for freshmen at private colleges is 46 percent (www.washingtonpost.com/news/grade-point/wp/2015/03/02/just-how-high-can-college-tuition-go/). This is problematic on many levels (who gets what discount, why have such high sticker price to begin with, etc., etc.) but it reassures me *somewhat*. That said, my H and I in no way expect to be able to save enough right now to fund $60K/year for a private college for two children. We are still paying my H's six-figure law school loans and we are prioritizing that, plus our own retirement. In addition, we pay more than $30k/year for daycare right now (for just one child) so throwing cash at college won't feel so horrendous when the time comes. We'll figure something out.
Many American students don't pay list price but if schools can increase the # of intl students who can, I don't know if the price will actually come down, Kwim? It seems like the ability of intl students to pay full price will continue to inflate it.
We do $5000 a year. This provides us a tax break and is to help offsite the 529 that was all ready funded for him by my parents. With the continue interest on the the all ready funded plan and us doing $5K a year we think that should be more then enough.
Zero dollars. My oldest is 9 and we need to get on it, but we also have a house we can't sell. Shit happens. It is the main reason I will go back to work in the next couple years.
Post by teatimefor2 on Dec 4, 2015 14:49:49 GMT -5
Nothing monthly. When the house stuff arose, we cut it. We put in bonus money and all gift money. I'm not too worried; when I go back to work, we will put aside a lot more. Otherwise, we plan to pay out of cash flow.