Anyone else spending $7000 oer month (or more) on tuition from earned income?

[Anonymous]

We have had one child in independent school for a few years (starting in middle school), and our second child will start independent school in the fall for 6th grade. (We have been in MCPS for elementary.)

As of June 5th, we went from paying $4000 per month in tuition to paying $7000 per month in tuition. I knew it was coming, but it is such a large amount. Our total net income per month is $13,000 (HHI of approximately $380,000 with both DH and I working full time.)

I sense a lot of people pay tuition from investment income, and perhaps not out of salaries.

Does it seem a bit absurd to pay $7000 per month for two kids to attend 6th and 8th grades?

(BTW, I know that these tuition amounts are for 10 months of the year, and not all 12 months)

[Anonymous]

Why would you do that? Why not move to a decent school district and put that money in a house? At least the house has some resale value.

Your kids don't need a perfect education. They need a good enough education.

[Anonymous]

Anonymous wrote:We have had one child in independent school for a few years (starting in middle school), and our second child will start independent school in the fall for 6th grade. (We have been in MCPS for elementary.)

As of June 5th, we went from paying $4000 per month in tuition to paying $7000 per month in tuition. I knew it was coming, but it is such a large amount. Our total net income per month is $13,000 (HHI of approximately $380,000 with both DH and I working full time.)

I sense a lot of people pay tuition from investment income, and perhaps not out of salaries.

Does it seem a bit absurd to pay $7000 per month for two kids to attend 6th and 8th grades?

(BTW, I know that these tuition amounts are for 10 months of the year, and not all 12 months)

Yes it does. But it's a choice you made.

[Anonymous]

These threads come up so often. People questioning whether the cost is "worth it." Only you can answer that. Why did you pick the particular school the kid attends? If it's too much of a stretch don't do it.

[Anonymous]

We have 4 kids - 3 in private and 1 in childcare. We pay $6000 a month in tuition/childcare. Our take home pay is variable but around $12K (HHI closer to $250K - you must be deducting a lot more if your HHI is $380K and you only take home $13K).

It sucks but is the most important thing for our family now.

[Anonymous]

Anonymous wrote:Why would you do that? Why not move to a decent school district and put that money in a house? At least the house has some resale value.

Your kids don't need a perfect education. They need a good enough education.

There's quite a bit of daylight between those two sentences. The first one is correct IMHO; the second on I completely disagree with.

[Anonymous]

Anonymous wrote:We have 4 kids - 3 in private and 1 in childcare. We pay $6000 a month in tuition/childcare. Our take home pay is variable but around $12K (HHI closer to $250K - you must be deducting a lot more if your HHI is $380K and you only take home $13K).

It sucks but is the most important thing for our family now.

Yeah, I'm really curious about your take home - we make 280K combined, my DH does a full contribution to 401K while I do 10% (stupid I know but inertia - I ned to up it). We pay health insurance, dental, eye, long term disability, accident, etc. And DC taxes. And our monthly take home is 13,500/mo

What else are you getting deducted?

[Anonymous]

Do you have a mortgage? Are you saving for college? While it seems that you can pay the bill, it doesn't leave much room for after-tax savings. But if college and your mortgage aren't an issue, you're fine.

[Anonymous]

Look if you can't afford t you cant afford it. Go to public or move somewhere cheaper.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have 4 kids - 3 in private and 1 in childcare. We pay $6000 a month in tuition/childcare. Our take home pay is variable but around $12K (HHI closer to $250K - you must be deducting a lot more if your HHI is $380K and you only take home $13K).

It sucks but is the most important thing for our family now.

Yeah, I'm really curious about your take home - we make 280K combined, my DH does a full contribution to 401K while I do 10% (stupid I know but inertia - I ned to up it). We pay health insurance, dental, eye, long term disability, accident, etc. And DC taxes. And our monthly take home is 13,500/mo

What else are you getting deducted?

We each only do 5% towards retirement. I have federal health insurance (think its $300-400 a month). We have private life/disability. MD taxes. We do medical and dependant FSAs.

[Anonymous]

Anonymous wrote:We have had one child in independent school for a few years (starting in middle school), and our second child will start independent school in the fall for 6th grade. (We have been in MCPS for elementary.)

As of June 5th, we went from paying $4000 per month in tuition to paying $7000 per month in tuition. I knew it was coming, but it is such a large amount. Our total net income per month is $13,000 (HHI of approximately $380,000 with both DH and I working full time.)

I sense a lot of people pay tuition from investment income, and perhaps not out of salaries.

Does it seem a bit absurd to pay $7000 per month for two kids to attend 6th and 8th grades?

(BTW, I know that these tuition amounts are for 10 months of the year, and not all 12 months)

Yes, especially considering you've got 5+ more years of this, then there's college and tuition only goes up.

[Anonymous]

What's you're current mortgage? I have to think that if you added it to 7k you'd be able to get a house in pretty much any excellent school district in the area and then be able to fund your retirement properly (5% isn't properly).

[Anonymous]

I know it's your money, your decision, but not smart, op.

[Anonymous]

Anonymous wrote:What's you're current mortgage? I have to think that if you added it to 7k you'd be able to get a house in pretty much any excellent school district in the area and then be able to fund your retirement properly (5% isn't properly).

Mortgage is $2100. We love our house and neighborhood and would never move. There are other factors outside the public school.

I would rather work an extra 10 years and be able to give me kids their current school than save more for retirement now. We have met with a financial planner. We wont be able to retire extravagantly but we will be just fine, especially with our house paid off. We are relatively young (started having kids in our late 20s, done by 35.) Last kid will be out of college by 57 and we can easily work 10 more years at that point if we need to.

[Anonymous]

Well we are at a much cheaper school. I pay about $1,300 a month and my net take home is $5,000 myself. Husband's net take home is about $6,000. My husband pays child support for his kids, which is also about $1,300/month. So our percentage that goes to kids is a lot lower than what you are paying. And it still feels difficult.

We are putting 18% of our salaries in retirement though.

I will tighten up spending on many things, but I wouldn't go completely broke for private school.