Tips for saving for college? How much to do you put into your kids college savings acct?

[Anonymous]

$210 HHI:
We start with $250/mo per kid.
Then we put in bulk amounts when we can throughout the year to try to reach the DC state tax maximum ($8k/kid).
Grandparents are not wealthy but have given us ~$12k throughout the years among the 4 grandparents so we have contributed that. We add small gift amounts. We added an inheritance of about $15k after an aunt's death.
So 6yo has about $60k right now and 2 year old has about $10k.
We'll increase as they get older and as childcare costs go down.

[Anonymous]

HHI is about $280k.

We have 2 young kids and do automatic $400/mo contributions for each kid. We also add in every birthday/Christmas/etc. gift from grandparents etc. So, usually it's about $5-6k per kid per year. Kids are still very young (3 and 1) but I think this has us on track to have the 529 cover full cost for in-state public. If the kids want to do something more expensive, we'll figure out a solution that works for the whole family -- probably some combination of student loans, other non-529 savings, and cash flow. (Consider, we can easily cash flow the $5k/year we're currently putting into the 529).

[Anonymous]

OP - i didn't read all of the responses but since we just talked about this with our financial advisor my suggestion would be to figure out how much you want each account to have by the time each kid goes to college, and therefore how much do you need to put in each month. You may have to have some give and take with what is reasonable to put in each month/year vs. what you want it to have. Then plan accordingly. Personally I would not sacrifice all vacations but maybe you cut back? Not knowing your situation I'm just not sure if that's necessary.

A couple things to think about - while ideally the 529 would cover all of college, at some point you may choose to supplement it from your current income if it doesn't make ends meet. Kids may need to get loans or choose to go to a less expensive school (I had to do both so I don't see this as the end of the world, though I'll probably be able to fund both kids).

Also, if you're not sure if your funds are performing, talk to a professional.

[Anonymous]

PP - one more thing - we don't overdo it on gifts. Grandparents and other relatives are firmly asked to give one or two gifts and money for college at Christmas and Birthdays. Most money they get for other things goes into college fund. For small kids this is totally fine, as they get older they want more of it for fun spending so we try to give them a portion.

[Anonymous]

When each of our 2 kids was born we opened a 529 account with an initial deposit of $10K and set up monthly deposits of $250. Every year when we get our annual salary increases we have increased the monthly 529 contribution so we don't see a reduction in our net living income... and we use a portion of DH's annual bonus every other year to boost the savings. Our kids are 7 and 4 now and we're contributing $500/mo per child. We plan to increase this to $700/month per child when we get this years salary increases, and that will be the steady state (aside from the occasional boost from bonus $).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:While it's not very DCUM-ish, we don't save for college. Our parents did not pay for our schooling, and we fully expect our kids will take on their own loans to pay for theirs. Grandparents do contribute to a 529 that will offset some of the difference in the very high cost of college today vs. what it cost 25 years ago, but it is more important to me that we save adequately for retirement so that our kids won't be saddled with caring for us then. If we had a windfall or new jobs that allowed us to max out retirement and also save for college--absolutely we'd start contributing to the 529s. But right now we don't have the resources to do both, and have decided (in part based on advise from a financial advisor) that retirement saving is more critical.

Around DC area, it is common for parents to pay for college or at least help. If you prefer to spend it on a big house, fancy cars and retirement, that's your choice but don't expect them to all go to college. Its one thing if you cannot afford it, but its another if you make lifestyle choices and choose not to. Today, you need a college degree to do most things. Its not optional like it was for our grandparents or even some of our parents. We choose to live in a small house and live way under our means so we can heavily save for college. My husband's parents didn't pay for his and he struggled till he got it in his 30's. He missed out having a normal college experience. Mine paid for mine. I cannot imagine not paying for ours, even if it just means a state college and graduate school. I'm not going to hope for financial aide and I don't want mine starting out life on their own in crazy debt.

PP, and it's not like we have fancy cars or a big house. We would certainly prioritize college saving over those things. We already have a small house and one paid off car, so there aren't a lot of corners we could cut to allow us to shift money into college savings. Our kids will qualify for substantial financial aid, and of course we expect to contribute the family portion from our earnings and assets while they're in school. We're just opting not to save for college instead of retirement. Unfortunately my grandparents did not make that choice, and it was pretty awful to watch the impact of that decision on my parents and their siblings in the final years when their resources ran out. We are actively choosing to avoid that path (and my parents made the same choice, based on that experience).

I get it PP. My parents didn’t make enough money to save much for our college education either (although I don’t think they have enough for retirement either and will both work until at least 70, but that’s another matter). My sisters and I got by through a combination of scholarships/grants, loans, and student jobs. DH and I are fortunate in that we can save more than my folks did (hoping to save the equivalent of in-state tuition), but if our kids need to take out a small loan, it’s ok. I just want to make sure they understand the consequences and understand how much they’ll owe. We were pretty clueless at 17 and my youngest sister especially ended up with pretty significant debt. I finished paying mine off in my early 30s, she’s still paying hers in her mid-30s.

[Anonymous]

MH and I each opened a 529 for each kid when they were born(and my mom did as well) and we contribute the max each month, plus any monetary gifts, which are minimal.

We will probably up it a bit once once we start ES and daycare costs decrease a bit. We seem to be on track for in state...not so much out of state. I'm seriously considering moving to VA for access to a better in-state selection.

[Anonymous]

I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

[Anonymous]

Anonymous wrote:I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

This person ^ said it perfectly.

He or she should host their own talk show.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

This person ^ said it perfectly.

He or she should host their own talk show.

+1 very well said.

I also have four kids and I started 529 for them immediately after they were born. They are now 17, 15, 13 and 7. The seventeen year old will have about 300k in 529 when she turns 18. The same goes for the 15, 13 and 7 years old. I also got very lucky that I invested 50k in 1997 in Apple Stock that I've kept since but I dont' think they will need it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

This person ^ said it perfectly.

He or she should host their own talk show.

+1 very well said.

I also have four kids and I started 529 for them immediately after they were born. They are now 17, 15, 13 and 7. The seventeen year old will have about 300k in 529 when she turns 18. The same goes for the 15, 13 and 7 years old. I also got very lucky that I invested 50k in 1997 in Apple Stock that I've kept since but I dont' think they will need it.

Classic!!!

OP: I'm struggling to save for my 4 kids college, what advice do you have?

Poster: Each of my four kids will have $300K for college, and I have a ton of other money if they need some. My advice is you should have bought Apply stock back in 1997.

Love it!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

This person ^ said it perfectly.

He or she should host their own talk show.

+1 very well said.

I also have four kids and I started 529 for them immediately after they were born. They are now 17, 15, 13 and 7. The seventeen year old will have about 300k in 529 when she turns 18. The same goes for the 15, 13 and 7 years old. I also got very lucky that I invested 50k in 1997 in Apple Stock that I've kept since but I dont' think they will need it.

Classic!!!

OP: I'm struggling to save for my 4 kids college, what advice do you have?

Poster: Each of my four kids will have $300K for college, and I have a ton of other money if they need some. My advice is you should have bought Apply stock back in 1997.

Love it!

The thing is, as bad as that guy's response is, there's really no good reply. there's no secret sauce or trick to saving for college. You budget, make sacrifices, and do whatever you can reasonably do to save up some money. Or you don't. You make it a priority. Or you don't. Of course, it's not easy for most to find extra money. Life is full of tradeoffs.

Show me your budget and I'll show you your priorities.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

This person ^ said it perfectly.

He or she should host their own talk show.

+1 very well said.

I also have four kids and I started 529 for them immediately after they were born. They are now 17, 15, 13 and 7. The seventeen year old will have about 300k in 529 when she turns 18. The same goes for the 15, 13 and 7 years old. I also got very lucky that I invested 50k in 1997 in Apple Stock that I've kept since but I dont' think they will need it.

Classic!!!

OP: I'm struggling to save for my 4 kids college, what advice do you have?

Poster: Each of my four kids will have $300K for college, and I have a ton of other money if they need some. My advice is you should have bought Apply stock back in 1997.

Love it!

The thing is, as bad as that guy's response is, there's really no good reply. there's no secret sauce or trick to saving for college. You budget, make sacrifices, and do whatever you can reasonably do to save up some money. Or you don't. You make it a priority. Or you don't. Of course, it's not easy for most to find extra money. Life is full of tradeoffs.

Show me your budget and I'll show you your priorities.

Not PP, but believe it or not, there are so many families that have very little left over once they fulfill the priorities of keeping everyone fed, clothed, and sheltered. Not everyone has fancy cars, vacations, or cable to cut, because they never had them in the first place. It’s just crazy how costs have risen even in the last 20 years- the cost to attend my alma mater (tuition + room/board) has DOUBLED since I attended in the late 90s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I love the helpful advice like have fewer kids. Might as well say, live in the past when college was cheaper.

We also have four kids and we approach it like anything else in parenting--do the best you can and realize you can't do it all. No one can predict the future but we've been told that college will be about $200k for in-state tuition, room, and board when our preschoolers are ready to enroll. So our goal is to have $100k for each of them to cover half, pay for another 1/4 while they're in school, and let them pay for 1/4. Maybe we'll even get lucky and one or more of them will receive a scholarship. Who knows, although we obviously can't count on it. There's a lot more that goes into having kids and being a part of a family than paying for college. It's an important part of the big picture, but it's not everything. So keep going on vacations with your family and enjoy your time together, just try to be reasonable about it.

This person ^ said it perfectly.

He or she should host their own talk show.

+1 very well said.

I also have four kids and I started 529 for them immediately after they were born. They are now 17, 15, 13 and 7. The seventeen year old will have about 300k in 529 when she turns 18. The same goes for the 15, 13 and 7 years old. I also got very lucky that I invested 50k in 1997 in Apple Stock that I've kept since but I dont' think they will need it.

Classic!!!

OP: I'm struggling to save for my 4 kids college, what advice do you have?

Poster: Each of my four kids will have $300K for college, and I have a ton of other money if they need some. My advice is you should have bought Apply stock back in 1997.

Love it!

The thing is, as bad as that guy's response is, there's really no good reply. there's no secret sauce or trick to saving for college. You budget, make sacrifices, and do whatever you can reasonably do to save up some money. Or you don't. You make it a priority. Or you don't. Of course, it's not easy for most to find extra money. Life is full of tradeoffs.

Show me your budget and I'll show you your priorities.

Not PP, but believe it or not, there are so many families that have very little left over once they fulfill the priorities of keeping everyone fed, clothed, and sheltered. Not everyone has fancy cars, vacations, or cable to cut, because they never had them in the first place. It’s just crazy how costs have risen even in the last 20 years- the cost to attend my alma mater (tuition + room/board) has DOUBLED since I attended in the late 90s.

I know! That's why I said "Of course, it's not easy for most to find extra money." You do what you reasonably can do.

[Anonymous]

4 kids here.
I put $20,000 annually in their 529s at my bonus time ($5000 per kid). started when my 2nd kid was born
We also max out our 401ks.

we are pretty frugal in other areas.

we try to do a cheaper summer driving vacation for our whole family (6 people is expensive)
Then my husband and I take a nicer trip- but since it's only 2 of us, it's affordable.