Can two fed govt job family afford to send two kids to elite private school?

[Anonymous]

We live outside DC, but I would love some help trying to figure out if we can afford (or if it is wise to pay) $60K/year to send our two kids to an elite private school. DH and I both work, and our combined income is 300K (with limited increases in the future --I'm a fed; he's a prof). Our 15-year mortgage (in a school district with poor public schools) is $3K and the other expenses are fairly normal (old cars so no car payments, no cable TV, but we have cell phones and "typical" family expenses, such as dance lessons, the occasional meal out, grocery, utilites, etc.). We have around 100K in savings, and about 150K in retirement/401K accounts, and we are in our late 30s. (No family money or inherited money in the picture).

It seems like we can technically afford the $60k per year (total to send 2 kids to elite private school), and have a bit left over for trips/music lessons/etc.

I would love to hear from some parents who have been down this road. What is the financial reality of living with this budget?

NOTE: Our alternatives are to (1) send kids to fairly strong Catholic schools or (2) attempt to sell our house (probably at a loss) and move to a TINY house/duplex in a super affluent area with excellent public schools. Both kids are seemingly bright/average/not genius-types and don't have any special needs that we know of. The kids are only 2 and 4, but we are planning now and I don't have the sense of the financial reality of actually committing to this path on our income.

[Anonymous]

Anonymous wrote:We live outside DC, but I would love some help trying to figure out if we can afford (or if it is wise to pay) $60K/year to send our two kids to an elite private school. DH and I both work, and our combined income is 300K (with limited increases in the future --I'm a fed; he's a prof). Our 15-year mortgage (in a school district with poor public schools) is $3K and the other expenses are fairly normal (old cars so no car payments, no cable TV, but we have cell phones and "typical" family expenses, such as dance lessons, the occasional meal out, grocery, utilites, etc.). We have around 100K in savings, and about 150K in retirement/401K accounts, and we are in our late 30s. (No family money or inherited money in the picture).

It seems like we can technically afford the $60k per year (total to send 2 kids to elite private school), and have a bit left over for trips/music lessons/etc.

I would love to hear from some parents who have been down this road. What is the financial reality of living with this budget?

NOTE: Our alternatives are to (1) send kids to fairly strong Catholic schools or (2) attempt to sell our house (probably at a loss) and move to a TINY house/duplex in a super affluent area with excellent public schools. Both kids are seemingly bright/average/not genius-types and don't have any special needs that we know of. The kids are only 2 and 4, but we are planning now and I don't have the sense of the financial reality of actually committing to this path on our income.

Your gross is $300k and have $100k in savings. $60k/year is a lot of money but you certainly CAN afford it if you choose to. In fact, I'd guess that your financial profile would be pretty typical at many of the better private schools around the Washington area.

Some folks, especially those in other parts of the country, will be shocked to know that, despite your upper class income, you don't have two Mercedes Benz cars in the driveway and vacations on The Continent every year. Don't worry about it and enjoy the choices you have.

[Anonymous]

300K-100K (taxes/health/TSP cont.) - 60K(tuition)-36K(mortgage)=about $8,000 per month take home pay. I think most American families would be thrilled to have that kinda dough.

[Anonymous]

We make a similar amount and have a similar mortgage (and no other debt) and there is simply no way in the world I would feel comfortable spending 60K (actually more with annual giving, tuition increases, and the like) a year on private school for the next 12 years. Perhaps your living expenses are lower than ours? I think I would feel like I was living hand to mouth. We are also in our mid-to-late 30s, and I want to feel like I am saving and getting ahead - not treading water.

[Anonymous]

Anonymous wrote:300K-100K (taxes/health/TSP cont.) - 60K(tuition)-36K(mortgage)=about $8,000 per month take home pay. I think most American families would be thrilled to have that kinda dough.

The calculations on this are all wrong. We pay FAR MORE than 100k in taxes - we lose closer to 130-140 when it is all said and done (factoring state and federal taxes and contributions to retirement/health insurance).

[Anonymous]

To PP (12:55 ) ==> so what do you do for education for your kids?

[Anonymous]

Anonymous wrote:To PP (12:55 ) ==> so what do you do for education for your kids?

They went to a private preschool and now they attend public elementary school in Arlington. We still have childcare expenses though (an au pair) given that we have no family in the area and we simply can't take off of work everytime there is a teacher work day, etc. We also did not want to stress about finding childcare for the summer and winter vacations.

So far, we are very happy with our local public school and we have the resources to supplement with activities and camps without a second thought. If $$$ were no object, I would probably send my children to private school but $$$ is a factor so we had to make some choices . . .

[Anonymous]

Anonymous wrote:

Anonymous wrote:300K-100K (taxes/health/TSP cont.) - 60K(tuition)-36K(mortgage)=about $8,000 per month take home pay. I think most American families would be thrilled to have that kinda dough.

The calculations on this are all wrong. We pay FAR MORE than 100k in taxes - we lose closer to 130-140 when it is all said and done (factoring state and federal taxes and contributions to retirement/health insurance).

Apologies for the ball parking but the xtra 30/40K is not FAR MORE. It's marginally more and you'd still clear five grand a month with housing paid for, retirement accounts fully funded and comprehensive health insurance for your family. Besides, there is no commitment involved here - you find you can't afford it, go to Plan B.

[Anonymous]

You need more retirement. If you really like your neighborhood and don't want to move to a netter public school district, send them to the good Catholic School.

[Anonymous]

some of these figures stagger me. After our mortgage and is paid for an retirement etc we have less than $3k to spend and I think we're doing WELL! You make 300k a year! That's crazy money to most normal people outside of this board.

1255, what ON EARTH are you spending your money on? Are you aware how out of touch with reallity you are?

[Anonymous]

Good gravy, there are scads of pricey private schools in the Washington area. If so many people think $300k is not sufficient HHI to have the kids go to these schools, how much is needed? $500k HHI? $1 million?

[Anonymous]

Anonymous wrote:some of these figures stagger me. After our mortgage and is paid for an retirement etc we have less than $3k to spend and I think we're doing WELL! You make 300k a year! That's crazy money to most normal people outside of this board.

1255, what ON EARTH are you spending your money on? Are you aware how out of touch with reallity you are?

Childcare (key expense - 25k for au pair), utilities (Water, gas, electric, cell phones, cable, internet), bi-weekly maid, food, transportation costs (gas, metro, car taxes, car insurance), life insurance, birthday parties/gifts/holidays, basic clothes for two adults and two growing children, basic home items (toilet paper, paper towels, laundry detergent, etc.), basic grooming items, healthcare and dental expenses, random/unexpected car or home expenses, charity, weekend trips or modest vacations, . . . of course, we could cut some of these out but things add up and we don't live an overly lavish lifestyle. Groceries/food alone cost us (3 adults and 2 children) close to 1,000 a month. The above also does not include the cost of furniture or other big ticket items. We moved into a new house a year ago and we have yet to finish furnishing the house. If we spent 60k on schooling we would have very little left over at the end of the year.

[Anonymous]

Anonymous wrote:You need more retirement. If you really like your neighborhood and don't want to move to a netter public school district, send them to the good Catholic School.

I agree. Your retirement is way short of where it needs to be.

I'm mystified by why OP and her DH moved into a bad school district given their high HHI.

OP, can you move?

[Anonymous]

I think it will be very tight. Our situation sounds pretty similar to yours - HHI of 320K (we take home net around 15K per month), no car payments, similar typical expenses, except we save 3K per month for retirement and 1K for college. Our mortgage is 5K. One kid in daycare, one in public school. There is really not a lot of wiggle room left. I agree with other pps that you need to save more for retirement. Also, you haven't mentioned college savings.

[Anonymous]

I am sorry but 300k is cutting it pretty close. You haven't even touched on college savings.

I think catholic is a very good idea as well.