How much should you contribute per month to 529 plan?

[Anonymous]

We save $500/month per kid, but we are in Virginia, and only get tax savings up to $4,000 per kid per year in the 529, so after the $4,000, we put the rest in a custodial account at Schwab.

[Anonymous]

We have 2 kids, aged 6 months and 2 years, and we save $16,000/year, which equals about $1300/month. We use this amount to maximize the Virginia tax benefit.

[Anonymous]

When we started a 529 for DD 8 years ago our financial adviser estimated for a VA in-state school we'd need to put away $200/month, so that's what we're doing for DD. DS was born almost 2 years ago and we're saving $250/mo. for him. That's with a new estimate from our financial adviser. We can't do much more than that so we hope it covers a large chunk of tuition and possibly room/board.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have 3 kids: 11, 9, and 7. We have about 35k in each of their 529 plans. How much should we start contributing now if we want to be able to pay as much of their college as we can?

We have 3 kids ages 15,13, 11. We have $280K saved. We are saving $1750 per month.

Per kid or total for the three?

[Anonymous]

Well saving for college .com will give you an outrageous number. Basically, if you want to save 100% for a private school in 18 years, I think it's something like 1400/per month per kid. Most people can't do that obviously. So just do as much as you can.

[Anonymous]

Anonymous wrote:We save $500/month per kid, but we are in Virginia, and only get tax savings up to $4,000 per kid per year in the 529, so after the $4,000, we put the rest in a custodial account at Schwab.

That is not true: in VA you get a tax break for up to $4,000 per kid per account per parent (so DW can open 3 accounts in my DC's name and contribute $4,000 in each of these accounts and get a tax break for $12,000; and DH can do exactly the same)

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have 3 kids: 11, 9, and 7. We have about 35k in each of their 529 plans. How much should we start contributing now if we want to be able to pay as much of their college as we can?

We have 3 kids ages 15,13, 11. We have $280K saved. We are saving $1750 per month.

Per kid or total for the three?

total for all 3.

[Anonymous]

interesting...

http://www.savingforcollege.com/articles/2014-plan-performance-rankings-q3-330

[Anonymous]

I've decided I'll pay for only tuition at a state school. I refuse to pay for housing and food. Kids need some responsibility and skin in the college game. The majority of my friends who had a free ride on the backs of mom and dad turned out to be idiots.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Side note
I remember asking one of my co-workers about 529 plan for her two kids.
And she said her and DH weren't paying for their college.

While sipping on Starbucks in her matching burberry boots and bags.
I said well at least you know your priorities, LOL.

Some people feel that it is better for kids to pay or borrow their own way. That they'll appreciate it more, or learn self reliance, or whatever.

I think its cruel when the famly has the means to help.

Totally agree. I hate it when people use the excuse that they want to teach their kids responsibility- particularly those that are so irresponsible for their own money. What type of message does it send to your child when their college is less important than a fancy handbag? My parents were like that but fortunately my grandparents were great and paid for my college. I've save $250K total for 2 kids aged 8 and 11.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Side note
I remember asking one of my co-workers about 529 plan for her two kids.
And she said her and DH weren't paying for their college.

While sipping on Starbucks in her matching burberry boots and bags.
I said well at least you know your priorities, LOL.

Some people feel that it is better for kids to pay or borrow their own way. That they'll appreciate it more, or learn self reliance, or whatever.

I think its cruel when the famly has the means to help.

Totally agree. I hate it when people use the excuse that they want to teach their kids responsibility- particularly those that are so irresponsible for their own money. What type of message does it send to your child when their college is less important than a fancy handbag? My parents were like that but fortunately my grandparents were great and paid for my college. I've save $250K total for 2 kids aged 8 and 11.

That is great!!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To the PP, that's awesome.

Side note
I remember asking one of my co-workers about 529 plan for her two kids.
And she said her and DH weren't paying for their college.

While sipping on Starbucks in her matching burberry boots and bags.
I said well at least you know your priorities, LOL.

Anonymous wrote:OP here: good for you PP! This is something to aspire to!!

Wow, that is sad....

Yup. A lot of selfish parents out there. I get teaching kids responsibility and all. But not saving a dime for them these days is just wrong. I know too many people college debt in the 6 digits and they are so stressed.

It's possible that they are house poor, YET will have their mortgage paid off when their kids are nearing college, and will use that money to supplement college then.

I know a couple of families that are doing that. Even the most financially secure and savvy folks don't have 529's, it's not unheard of.

The cost of a child born today to go to a four year university (use VA Tech as an example) will cost around 200K and this is just for undergrad. It makes sense to start now. You get a tax incentive as well. And to these house poor families, the minimum contribution is $25 per month. So give me a break.

Who are you fighting with? Jeez, who pissed in your cheerios this morning. What do you care what others do.

Let me guess... you are one of those Starbucks sipping, Burberry wearing, d-bag parents?

[Anonymous]

We are saving $100 per kid each month right now. Hopefully, that will increase in the coming years, but it's what we can manage now. We focus on our own retirement savings and emergency funds first. There are lots of ways to pay for college but no one is going to pay for us when we get old.

[Anonymous]

We put $4k per year in one 529 for our one child. I guess that technically works out to $333 a month if you want to be precise. It's what we can swing now and we will attempt to do the same for #2 when it arrives this summer. Child is 4 and there's roughly $20k in there right now. One grandparent has a 529 for our child as well with roughly $16k and another has a custodial brokerage account with about $10k. So given all that I think we are doing ok.

Right now we need to have more of the focus on maxing our 2 retirement vehicles, paying for daycare, and slowly rebuilding our e-fund.

[Anonymous]

Anonymous wrote:To the PP, that's awesome.

Side note
I remember asking one of my co-workers about 529 plan for her two kids.
And she said her and DH weren't paying for their college.

While sipping on Starbucks in her matching burberry boots and bags.
I said well at least you know your priorities, LOL.

Anonymous wrote:OP here: good for you PP! This is something to aspire to!!

Maybe her family is paying? I have a colleague from a lower middle/middle class family who has a grandfather (great grand dad) who is contributing $1000/month to a 529 for their son. The parents don't contribute anything because they don't need to.