How do people afford tuition that will only continue to go up?

[Anonymous]

Anonymous wrote:Income is fine at $400k combined salary but we have 3 kids. 2 have special needs and will require small class sizes. All kids did public but now with middle and high school approaching, we think it’s time to move 1-2 kids over to private. Income is enough to not qualify for aid yet 2 tuitions of 40k or so, feels constraining. We don’t typically take lavish trips but wondering how others see this, finance it?

Just wait until you have to pay 160k a year just to keep the two kids who need small classes in private colleges with small classes and supports.

[Anonymous]

Boards base the hikes on investment returns. It’s assumed that you are paying tuition out of investment returns which last year were high (over 10-20%). If you are paying out of income, tuition isn’t set for you.

That’s been my experience anyway and when I started seeing it that way, the whole thing lost value to me, but that’s how the decisions are made and that’s nothing new.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Income is fine at $400k combined salary but we have 3 kids. 2 have special needs and will require small class sizes. All kids did public but now with middle and high school approaching, we think it’s time to move 1-2 kids over to private. Income is enough to not qualify for aid yet 2 tuitions of 40k or so, feels constraining. We don’t typically take lavish trips but wondering how others see this, finance it?

Just wait until you have to pay 160k a year just to keep the two kids who need small classes in private colleges with small classes and supports.

They don’t “need” private college. You need to look up “need” in the dictionary.

[Anonymous]

Get a tutor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At $400K, you still have 250K, which is more than many make. You can live comfortably on that.

Tuition is paid in post-tax dollars, not pre-tax.

Ok, you realize lots of families live off of $100-150K or less just fine. It's all about priorities and lifestyle choices. They are very wealthy.

Not wealthy. Maybe 30 years ago but not now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Income is fine at $400k combined salary but we have 3 kids. 2 have special needs and will require small class sizes. All kids did public but now with middle and high school approaching, we think it’s time to move 1-2 kids over to private. Income is enough to not qualify for aid yet 2 tuitions of 40k or so, feels constraining. We don’t typically take lavish trips but wondering how others see this, finance it?

Just wait until you have to pay 160k a year just to keep the two kids who need small classes in private colleges with small classes and supports.

They don’t “need” private college. You need to look up “need” in the dictionary.

A kid who 'needs' private high school is going to 'need' private college

[Anonymous]

Anonymous wrote:Boards base the hikes on investment returns. It’s assumed that you are paying tuition out of investment returns which last year were high (over 10-20%). If you are paying out of income, tuition isn’t set for you.

That’s been my experience anyway and when I started seeing it that way, the whole thing lost value to me, but that’s how the decisions are made and that’s nothing new.

That makes sense. Private schools are not for people who have to sacrifice to afford them, they are for people who can easily send their kids and then show up to the auction and overbid on a vacation house they don't want to support the school.

[Anonymous]

If you’re wondering how people in $200K jobs and $400K incomes afford private, it’s most often through wealth. I started purchasing rental apartments with bonuses and savings in my early twenties, but many also inherit and have grandparents

If I were in your position, I would put my kids in publics with the best IEP possible and start saving $100K per year. It only takes 10 years to accumulate a $1m without interest. With the right investments, you can build a very good portfolio. That portfolio will mean a lot for your family and your children will still get a great education

[Anonymous]

We also have an annual income of $400k and 2 kids in top private schools. Grandparents pay $80k in tuition, like most other families I know in our income bracket.

[Anonymous]

Anonymous wrote:We also have an annual income of $400k and 2 kids in top private schools. Grandparents pay $80k in tuition, like most other families I know in our income bracket.

Same here. There are very, very few in our bracket ($400K) at my kid's two schools. My kid (3) attend private for high school only. Grandparents pay for 2 of the 3 of them. We pay for one. There is no way we'd pay $165K out of our own income.

[Anonymous]

Anonymous wrote:Not sure 400k is enough to do independent school but maybe look at Catholic schools.

Perhaps you could do Gonzaga and stoneridge as tuitions are less than independents?

Stone Ridge is an independent Catholic school, not a parochial school. Funding structure is different than other Catholics and more akin to schools like NCS, Holton Arms, GDS, etc

[Anonymous]

A seven figure HHI helps absent wealth/grandparent funding.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We also have an annual income of $400k and 2 kids in top private schools. Grandparents pay $80k in tuition, like most other families I know in our income bracket.

Same here. There are very, very few in our bracket ($400K) at my kid's two schools. My kid (3) attend private for high school only. Grandparents pay for 2 of the 3 of them. We pay for one. There is no way we'd pay $165K out of our own income.

+1 $40K per kid coming from not us. Until that was made available, they were in public school.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Income is fine at $400k combined salary but we have 3 kids. 2 have special needs and will require small class sizes. All kids did public but now with middle and high school approaching, we think it’s time to move 1-2 kids over to private. Income is enough to not qualify for aid yet 2 tuitions of 40k or so, feels constraining. We don’t typically take lavish trips but wondering how others see this, finance it?

Just wait until you have to pay 160k a year just to keep the two kids who need small classes in private colleges with small classes and supports.

They don’t “need” private college. You need to look up “need” in the dictionary.

A kid who 'needs' private high school is going to 'need' private college

Riiight. Just like they “need” a country club membership or a leased luxury car when they turn 16.

Private schools are never a necessity. They are a luxury like trips to Europe, 1.5M homes, and BMWs.

[Anonymous]

Anonymous wrote:If you’re wondering how people in $200K jobs and $400K incomes afford private, it’s most often through wealth. I started purchasing rental apartments with bonuses and savings in my early twenties, but many also inherit and have grandparents

If I were in your position, I would put my kids in publics with the best IEP possible and start saving $100K per year. It only takes 10 years to accumulate a $1m without interest. With the right investments, you can build a very good portfolio. That portfolio will mean a lot for your family and your children will still get a great education

+1

The minute some Boomer or person answering to a Boomer starts telling you your child ‘needs’ private school, walk away. Fear is marketing.