Affording Private School Tuition

[Anonymous]

We decided to change from private to public for couple of reasons. Main reason was - private does not guarantee good academics. They talk about that - but do they really achieve it? Only if a very good teacher is in the class. They provide cozy environment. small classes and 'fun' aura. Instead school need to teach kids how to succeed with fun or no fun. And give strong knowledge - at least that is what we were expecting - but not treating elementary kids as pre-schoolers.

[Anonymous]

NP. If you are already paying for private school tuition, you do not need to save the entire amount of college tuition unless you are planning to retire before the kids are through college. We are saving about half of what it would take to pay for the costliest private college, and we may have some left over for grad school. Yes, we are sure (absent something really extreme) that we will have the income at that time. In fact, it is likely to increase over time. DH and I have both gotten raises every year, even if they were small at the start of the recession. And DH is likely to get a substantial promotion within the next year.

Now what's really scary is the poster who thinks 529 plans are government backed bonds.

We pay for private because it is the kind of education we want for our children and thought it was the best fit for them. We did not think our JKLM in boundary school was the best fit for our children, although this is an individual child-by-child decision every parent must make. We can afford it without too much trouble, so we do it. I will never wish I had the money instead of spending on on my kids' education. I may regret the closet full of expensive shoes I have someday, but not what I gave my kids.

[Anonymous]

We make $450,000, have a mortgage payment of $2,700/month, and no other debt. Tuition for two children would cut into our savings too much -- we'll go public.

[Anonymous]

What's a "JKLM" school?

[Anonymous]

Anonymous wrote:We send our two kids to parachial school at a modest (by DC standards!!!!) $10K each (all in, tuition, bookes, uniforms etc). Our combined income is $150K, we have no debt except a mortgage and we can make the $20K that we are spending on school work, but it is tight, and although we are able to save, it is not nearly as much as we'd like.

Do you mind sharing what your expenses are for "aftercare ", etc?

Thanks!

[Anonymous]

response to 7:04-. Tuition is about $7K per child, uniforms, $150 each, after care $2800 each and other misc. stuff (book fees, HSA fees)- probably $500 each. So closer to $11K per child when it's all said and done. That doesn't include $3Kish per kid for summer camp, or the $1K that we donate to the school/church each year.

[Anonymous]

Anonymous wrote:
Now what's really scary is the poster who thinks 529 plans are government backed bonds.

I'm the poster who said government bonds are an option...nowhere did I mention 529 plans...you must not be aware that the US gov't and some states issue education bonds: Illinois used to, not sure if it still does, and there are series I and some EE bonds issued by the US govt...

[Anonymous]

pp here...
http://www.suntimes.com/business/savage/2292316-452/savingbonds-college-bonds-savings-percent.html

How college savings bonds work

College Savings Bonds work much like U.S. Savings bonds. They’re sold at a discount from face value, and the interest builds up over the years. At maturity, the holder receives cash for the full face value of the bond.In the meantime, they accrue a fixed rate of interest that is exempt from both federal and Illinois income taxes.
http://www.finaid.org/savings/bonds.phtml...another link

[Anonymous]

Anonymous wrote:I will never wish I had the money instead of spending on on my kids' education. I may regret the closet full of expensive shoes I have someday, but not what I gave my kids.

Exactly - I could not agree more!

[Anonymous]

I think the debate seems to be: saving for retirement, college, "rainy day" not buying a "closet full of expensive shoes.

[Anonymous]

I hate to let the cat out of the bag, so to speak. But I just have to share that the people I know at private schools cry poor and get financial aid. They are lying and committing fraud, so if they get caught, they will have to pay back every last penny plus fines.

PP, these are the people with the "expensive shoes" (or the like), BTW. You would be astonished where people's priorities lie. They really feel entitled to have it all, and then some, without paying for it themselves. It's pretty disgusting. Why do some think it is a game to beat the system and rob everyone else? Such entitlement must be low self esteem? A disappointment to their own family? Really feeling they come from a nothing family themselves? It is baffling.

[Anonymous]

Anonymous wrote:

Anonymous wrote:A different perspective here. HHI about 140K. We are planning to do private preschool through kindergarten then public if we can, private if we must. We factored the decision into our buying strategy when we realized that we couldn't afford a home in the in-bounds for a "decent" school in DC area without real sacrifice. So we bought in Brookland, put 20 percent down, and have a mortgage of 1900 / month and no other debt. We are maxing out our 401Ks at the moment. When we start paying preschool, we'll probably dial that down a bit as well as make a smaller monthly contribution to the 529 we have set up than we are at the moment (we put about 10K a year into it now).

We don't do daycare or a nanny now, so we're saving the money we'd pay for that for a preschool fund. We plan to do a very part time program starting at 4, then private K (mainly because I dont like the DCPS approach to kindergarten - homework, too academically driven, etc - just my personal opinion). We will then work on getting into one of the public montessori's by OOB lottery. If we don't get in, we'll do private as a plan B.

Both DH and I were diligent savers before kids and marriage and so on and came into our marriage with about 400K in savings. Nothing to write home about in this richer-than-rich culture, but it has helped us to save for the things we think are important - like private school, potentially, funding our retirements, and college for DC (only have one so far) but without sacrificing everything like travel, etc. We also live very modestly. I understand how many people feel poor at 200K and so on, but people can improve their chances at living well for less by making certain choices.

Just curious why you didn't put $400K to mortgage in "decent" school district, instead of falling back on it for private school and college?

That's easy. If I put all my eggs in that basket, I'd be house rich and locked down to public school. If I then had a DC with special needs, or just found that I needed to go somewhere else beside the local public, I'd be trapped by my decision. LIkewise, I would have taken all of that money and, instead of watching it grow, would have invested in the housing market which isn't doing so great at the moment. Instead of feeling relaxed and with options, I'd be in a smaller house in a "richer" neighborhood but feeling decidedly poorer. Just a personal choice, I guess. I didn't want to feel like I only had one option or that I was trapped into the public school. Even the best public school may not be right for everyone. And I do have to say that DCPS schools aren't really my cup of tea, and we wanted to stay in DC.

[Anonymous]

HHI of 650K and chose to opt out of the 30K a year elite schools. Reasons:

1. We have three kids
2. We are older parents, so retirement is something we think about.
3. We have been around long enough to know that things can change on a dime; although we have been making this income for years (and for a couple of years were making 7 figures), we know that luck can change and we could make much much less
4. Our parents are much older and we see first hand how important to save for retirement, mainly, so that you are not a burden to your kids (but secondarily, so you can have a little fun after a lifetime of hard work).
5. It is nice to have a little money when you and your kids are older -- family vacations (with grandkids), helping your kids with graduate school, a down payment on a house, etc.
6. Finally, we were concerned about the sense of entitled that many (but not all) elite private school kids seem to have; we came from decent middle class backgrounds and have worked extremely hard gor every cent we have.

It is absolutely not about having a "closet full of nice shoes."

[Anonymous]

The DC-area has some of the nation's top private schools. Many people under-state the residual value of being educated in such environments. When you're talking about the top tier, the dividends often continue for decades, in terms of employment opportunities, professional referrals, etc. etc. So though some may be quick to call such education expenses a waste, they're not accounting for many of the long-term dividends their children might reap. Not only do I see strong professional cliques from my Ivy League college persisting for years, but even more so for those who went to elite prep schools (a la Sidwell, Exeter, Andover, Georgetown Day etc.) many social/professional networks stay intact for decades. Good or bad, it's a reality.

[Anonymous]

It seems the value of a private school is greatly slanted here and simply part of weak attempts to keep up with the perceived next guy. Where are you from that this area has such "great" private school education? I find that such an odd belief, having lived in many different areas. Every single day I hear about what "great" public schools are in the area, so which is it? ie: if the public schools are so wonderful, why chant the benefits of the area private schools? It seems unlikely that both would be true, though I do know of one area where it is (not here). It just seems some are so desperately clinging to the "who you know" philosophy, which can not possibly hold true to the extent they believe. There are so many who think they are more important than they are, though some underlings may fail miserably to see the difference. I have seen some people be very, very disappointed and would not wish that on anyone.