Daily Poll - Thursday

[ct]

Financial chat for your thursday morning/afternoon/evening

[seattlekari]

My parents have purchased credits for E through a pre-paid tuition program in our state. Obviously this will only cover her tuition, so the remaining expenses will likely be covered by me or through loans, etc. I'm not really counting on E's dad contributing much since he is having such a difficult time keeping his own life together.

[2brides]

Well, my dad put money into an account for each kid when they were born. That money has risen and fallen with the market (reminds me I need to look at the accounts.) Unfortunately, we aren't in a place to add to it right now, but it is nice to know there is something there - and we do plan to add to it when we are able.

That money won't pay for a 100%, but hopefully, will be enough for a couple of years. I have mixed feelings about this. My parents paid 100% of my undergrad and none of my grad (my grad school loans will be paid off the year the kids go to college. Whoo hoo!) L's parents paid nothing toward her undergrad or graduate programs and she had to work/take scholarships/grants/loans to pay it all off. So we are compromising by paying part of it undergrad (or whatever type of post HS schooling.)

[twotrue]

You need another option. Yes, but not yet. JB has her own savings account and any money she gets from bday, xmas, recycling, etc., goes into that. But at this point in time I can't set up a 529. I want to. I think it's important. But my financial plans include paying of my debt first and foremost. Once I do that (and the sooner I do it) I'll be able to make a bigger impact on her life.

ETA - Nevermind, I see that option now.

[ct]

I voted no, but its kind of a secret snowflake. As part of the adoption "package", the state will be paying for college tuition, room and board, and a book stipend equal to whatever the going rate at UCONN is at the time. Huge blessing and the kids will absolutely be taking advantage of it. Anything above and beyond that, they will pay for themselves via loans, savings, scholarships, or working.

Even if that wasn't the case, our scenario would be like TT's...our focus is on getting ourselves in the best financial position (eliminate debt and have a healthy retirement savings) which will benefit the kids in the long run. My view of things is definitely impacted by the fact that I paid for my college/grad school 100% and took it very seriously vs. DW getting a significant amount of her college paid and not taking it seriously at all.

[rikkiandjulie]

I can't see the options from my phone but I get the jist of it. Julie and I disagree with this quite a bit. We've both had to pay for our schooling, and Julie is in a private school she's at over $100,000 in debt. I don't want that for our kids, but she thinks it's important our kids value their education. We will compromise by paying for books/room board all four years and one year of tuition. Tuition they will cover the remaining three years.


Rikki-iPhone

[hlke]

I chose the first, but I think in practice it will be more like the second choice, because we do want them to contribute so they understand and value their education. So we will likely at least have them pay for books and living expenses beyond tuition/room/board. But we are financially fairly well off and therefore the kids won't be getting any financial aid, so we feel it's our responsibility to help them pay most of the cost. C's parents didn't do this for her, and she views it as their primary failing as parents. She joined the Navy to pay for school and we wouldn't want to constrain our kids' choices in the way she experienced. So we'll mostly pay for undergrad, but they'll be on their own for grad school.

[joyseattle]

I started working at 16, helped with house expenses, paid for all of my higher ed (two bachelors and a masters) and I'm still paying off my loans. C went to private school all her life and had all of (public, but out of state) college/books/room and board minus $7 paid for by her mom (in part from her father's life insurance) but she did work for part of college.

After we make the kids, we have a savings account for them, but will focus on us and our retirement first. Hopefully, we'll have a bit of savings to help off-set their costs, plus their savings, anything they earn and any gifts from family. Our kids can do community college in high school and live at home if they stay nearby (lots of schools within an hour drive) if they want and we'll cover basic expenses, books, etc, but tuition will most likely be on them in the form of scholarships, financial aid and/or loans. C would like our kids to have what she had, but it's not really feasible unless one of us drastically changes our income level or we win the lottery we never play.

[eratmama]

CT--that's an awesome adoption package. (as it should be) I have heard rumors that if kids are in care for three years prior to adoption that they get paid tuition at a state school but have been unable to verify that. I hope it's true, because so far my college plan for the kids is telling everyone who compliments Pumpkin's eyes that they owe me $1 for his college fund.

[kershnic]

I am eternally grateful for what my family was able to give me towards my education. If I can pass that forward to my children I will do it. However, unless our financial reality changes substantially I doubt we'll be able to be as generous. We will do our best to prioritize savings while also balancing enjoying our lives and saving for our own retirement. In all morbid honesty the most likely way we'd be able to pay all is if we have an inheritance - but I would prefer all relevant parents and grandparents live forever. B and I have somewhat different outlooks on this as well. Her parents helped her, but not as much as mine did, and her public education cost a small fraction of my private education. But we're both happy with the experience we had and the education we got. I hope when our kids are old enough we'll be able to have some good conversations about the options, their desires, and the limits of our ability to help.