I genuinely don't get saving for college for kids

[Anonymous]

Anonymous wrote:Educational debt is modern chattel slavery, or at least indentured servitude, and the complexity and lack of transparency in college pricing verges on criminal. I worked like a dog in dangerous, low-status jobs to pay for college. Borrowed money for professional school and it was a very good investment, but the amounts involved were laughably small compared to the life-mortgages people come out of school with today. If you have the money, it is irresponsible not to provide your child with help building their future.

It’s more like indentured servitude to the bank. But yes. And so many jobs are low paying.

[Anonymous]

Anonymous wrote:My child was also very bright when she was young (still is!) but along the way was diagnosed with ADHD and by middle school was struggling. She manages good grades but struggles on tests. Despite being very bright, will not be getting merit aid and due to test scores, college options may be limited.

I would also offer that my parents paid for my tuition at a state school using money inherited from a deceased grandparent. My husband’s family also paid his tuition. In my opinion, this is the greatest gift a parent can give, funding a college degree and allowing their child to enter the working world debt-free.

ITA and we hope we'll be able to help some with grad school.

[Anonymous]

Anonymous wrote:OP's plan might work because -- (a) she only has one child; (b) she does not seem super concerned about the prestige of the college; and (c) her daughter is a high achiever.

DH and I have 3 kids, and they do fine in school, but are not academic super stars by any means. My DS is a 12th grader, and we recently filled out the Common App that many colleges use. It asks if you plan to apply for financial aid. We figured it helped our DS that we were able to check "no" to that box because we have 529s for each of the 3 kids (thanks to my in-laws). It may help him a bit in the admissions process that he is full pay. That's not really fair to have "full pay" count toward admissions, but perhaps my DS would be subsidizing another student who is a better student but does not have the $$ to pay for this college.

Even my DS (with a 3.1 GPA and similar ACT score) is getting offered some merit aid from (not well known) colleges. So that suggests that, if you have a high-achieving child and are not too picky about the college, it might work out for OP.

Her daughter is not a "high achiever", she is "young but very bright". Lots of kids are "young but very bright" but don't end up top of the class in high school. You shouldn't base your entire college financing plan on that. One of DS's friends was a top student through ES, all As in middle school and start of HS in honors classes. By 10th grade decided he was done with it and leaned into his social life and turned into a B/C student. My DS was very bright when young but was diagnosed with ADHD in middle school, had a really rough 9th grade but fortunately lots of tutoring and exec function support got him on a better path and he's now doing well and has more college options than we would have expected in 9th grade. There are many, many paths through HS and you never know what will be your child's.

[Anonymous]

Anonymous wrote:Does attending the best college you can make you the person you are? Does it create your life?

Yale will afford you a lot more opportunity than ASU. Opportunity is a nice thing to have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is a lot of words that boil down to, "I did it, so can she. If she doesn't get merit aid, she'll just have to go to a cheaper/less competitive school."

+1. Why do you want us to validate your choice?

+2 This post reminds me of my mother: "I bought a nice, suburban house at 25, so why can't any of you?" "Um, because you're being willfully obtuse about how things have changed."

[Anonymous]

I can’t really tell from your post if it’s the money, i.e. such a huge number that you feel you will never reach so why bother or, if you feel it’s work ethic and personal responsibility you are trying to teach? Or, even third reason - - you just don’t have the extra right now and so want to relieve yourself of the guilt? Whatever the reason they are yours and so you feel what you feel.

I think what posters are trying to convey is that the cost is much more significant in today’s dollars, most DC in the DMV this demographic interacts with are bright, merit scholarships are increasingly more difficult to get, and your child may have other issues that preclude her from taking your path.

I would save something. Even a year or two is better than nothing. And while you may wing it at the time ( I think you said that above?) if she is young why not take advantage of compounding interest. And the tax credit! So, if you can save a year’s worth of tuition that amount will still earn more than you saved ( maybe even one more semester’s worth.) Why not!

This is touchy for me, and I’ve said this before on here, I paid 95% and while I am high achiever, goal oriented, strong work ethic, I would still have had the same mentality. Putting yourself through college is not the only way to get it. The reality is that it was HARD and I still carry resentment on some level.

Having to always work, live week to week, saying no to every pizza or hang out offering, all the while living with roommates who had parents credit cards for books, off campus food ( no swipes back then), weekend trips to other campuses to visit friends, shopping trips. Not to mention your grades can suffer a bit as you have to work!

Why not save something? Assuming you are like most of us on here you have a good income, perhaps occasional birthday or holiday money, a raise. We have one dc with many issues. His life will not be like ours. The one thing going for him he will have a college degree as still almost universally required. It will be paid 100% by us. Our others have many more options but they are juniors and seniors so we know what’s likely in terms of acceptance, cost, merit, special interest and they know the amounts they are working with. None of this is a guessing game which is where you are now. At birth the financial advisor said: state, out of state, private....pick your goal and I’ll give you the amounts. Easy.

If you have a little one, parenting only gets harder. This is an easy fix for you if you prepare now. Best of luck.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a lot of words that boil down to, "I did it, so can she. If she doesn't get merit aid, she'll just have to go to a cheaper/less competitive school."

+1. Why do you want us to validate your choice?

+2 This post reminds me of my mother: "I bought a nice, suburban house at 25, so why can't any of you?" "Um, because you're being willfully obtuse about how things have changed."

Or my mom, "For what you paid for that house in DC you could have an estate out here." Yes, mom, but then I wouldn't have a job that would pay for the estate.

[Anonymous]

We ended up declaring bankruptcy to get ours through college.

[Anonymous]

I'm not going to read the surely inane responses on this thread.

OP I AGREE WITH YOU.

You are not missing anything. I had the same experience as you and paid for law school myself as well. There was no huge crushing debt. I took out only as much money as I needed and aggressively paid it back. My siblings all did the same. My cousins all did the same. None of our families bankrolled our education and WE VALUED IT MORE.

I love my peers who take on insane jobs and hours to make money to help their kids. You know what helps kids? Prioritizing spending time with them, being a part of raising them and teaching them responsibility and to take ownership of their lives.

OP- listen to your own good common sense. Your kid is lucky to have you.

[Anonymous]

Anonymous wrote:We ended up declaring bankruptcy to get ours through college.

That's hardcore parenting right there in it for the long haul, imagine your child worked their tail off to make the most of it

[Anonymous]

you don't save 300k you save a lot less and compound interest takes over.

[Anonymous]

Anonymous wrote:We ended up declaring bankruptcy to get ours through college. [/quote]


Nice. And we the taxpayers picked up the tab.

[Anonymous]

Anonymous wrote:This is all a joke. US college is simply too much money, for too little return. The debt is crushing. Something's gotta give.

I wonder what it'll look like in 18 years! It is nuts and unsustainable. How do folks pay for daycare, pay their bills, save for retirement, save for an emergency fund AND save for their 529s?

[Anonymous]

Anonymous wrote:I think it is ironic, that the people on this forum who are most able to save for college in a 529 (this is what DCUM means by "saving for college") could likely afford to cashflow college if they needed to, so probably don't need to amass a small fortune in 529 accounts. 529 accounts are tax friendly and people make so much money, so why not.

One thing you're missing, though, is that when people save for college they don't know for sure they will be able to cash flow it when the time comes. My parents saved for college in a tax-advantaged account (pre-529, so this was something they set up with a financial advisor). In the end, they were able to cash flow it, but my dad had a lot of friends who had had health issues and were working less or retired when their kids neared college. DH and I are in the same boat. Our kids are little, and while we could pay for college out of income now, will that be the case in 15 years?

Also, the tax benefits are quite good if you start saving early.

[Anonymous]

I don't have an issue with your plan. I think the difference in the posters come from those who feel that their children should be able to choose any school vs. those who believe that community college to a 4 year public education is sufficient. There is a drastic difference in costs with both sides.

The average Maryland community college costs are about $7500 per year. That is doable with a part time job or funds from a UMC parent.

Two years of community college, debt free. Public university is about 11k a year without room and board or 23k with room and board. Even without help or scholarships, your child's loans would be about the same as yours at 40k if they went to a state school with room and board. Much less if they worked or there were scholarships.

If they are willing to take a non-traditional route, it is 100% doable without huge savings. However, setting expectations early is key.