3 kids under 5. How will I educate them?

[Anonymous]

Wondering how others with 2, 3, or more small children and modest incomes (hhi<200k) are planning to educate their children. We put away 500 per month per child but that won't get us too far. How are you planning to finance your kids' education? I'm aware of the DC program to get a break on in-state tuition so was thinking first to tell my kids they have to go that route. But that still leaves a hefty bill.

Any thoughts or ideas you can share?

Thanks

[Anonymous]

Tell them from a young age that they are responsible for paying 1/3 of their college costs through their own savings/earnings, loans, or merit-based academic/athletic scholarships. Encourage AP courses and dual enrollment as a way to gain credits much more cheaply. Don't bad mouth 2 year institutions as a good investment for knocking general ed courses out of the way.

[Anonymous]

How many will be in school at the same time? Most financial aid programs look at how much the family is expected to be able to afford at one time, and the divide that amount by the number of kids in school that year. And then it's state schools, aid, and loans.

[Anonymous]

I save what I can and will cross that bridge when we get there.

I believe the landscape for higher education will change over the next 10-15 years so I just save as much as we can to provide the most options.

For example - my husband went to a service academy. It is an option now - but who knows if it will be an option 10 years from now.

[Anonymous]

Also, the money is for kids that go to public high school in DC, and it's a federal program that has to be renewed annually. Probably don't want to rely on that. Although it sounds like you're saving fairly well anyway. I agree with PP about letting the kids know early that they'll be responsible for some of it.

[Anonymous]

We are doing what you are doing, OP, just the best we can. We have a 2 and 4 year old and make $195. Save $500 a month for each (after we max out a Roth and our 401k). Hoping to increase their 529s once they get into ES, but with childcare costs, its not possible now. Our current goal is to save for public university with maybe something left over for grad school.

I'm also cautious about over saving in a 529. We will reassess the saving plan when they leave elementary.

[Anonymous]

Not to be snarky, but didn't you think about that before having the 2nd or 3rd?

[Anonymous]

Anonymous wrote:Not to be snarky, but didn't you think about that before having the 2nd or 3rd?

Not to be snarky, but some people value the relationship established between siblings and a larger family higher than the cost of a four year education.

[Anonymous]

We just had two, for this reason and many others.

[Anonymous]

Tell them they will pay for their schooling. Why is that such an awful responsibility? There are many people, including myself, whose parents were not able to contribute anything to college. We were still able to work hard, graduate, and move on to professional degrees. Really people, your kid will be an adult and will be able to work for his schooling. Not ideal, but absolutely doable.

[Anonymous]

Anonymous wrote:Tell them they will pay for their schooling. Why is that such an awful responsibility? There are many people, including myself, whose parents were not able to contribute anything to college. We were still able to work hard, graduate, and move on to professional degrees. Really people, your kid will be an adult and will be able to work for his schooling. Not ideal, but absolutely doable.

+1
I paid for my own education and have done quite well. My parents had three kids under five and told us early on that we would all go to college, but we would all pay for it ourselves. My parents gave me $500 each year that I was in college (grand total $1500) -- I graduated a year early by taking as many credits as I could handle each semester. I worked a part-time job and got merit scholarships for my second and third years of school. I went to a state school and graduated almost debt free. Granted, this was 25 years ago.

I also paid for my own graduate school.

[Anonymous]

You could check out the cost for prepaid. I think mine was in the $500 per month range for two years community college and two years state school and was fully paid in five years. You can apply the money elsewhere if you choose but this has allowed us to pay for all if our kids plus continue saving for other associated costs.

[Anonymous]

We only had one child, partially for this reason. And he has a prepaid tuition fund.

[Anonymous]

Anonymous wrote:Not to be snarky, but didn't you think about that before having the 2nd or 3rd?

Exactly

[Anonymous]

I say save what you can. You might be in a different place in 5-10 years financially and be able to save more. When they are school age, do a combo of savings, cash flow and loans (parent and student).