FA - real life

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

Salaries typically go up annually. So a family with a kindergartener and a 300k HHI likely had a considerably lower income 7 years priors (2 years before kids). And many are paying off student debt. Biological clock doesn’t last forever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

So? Some people can only afford paycheck to paycheck. Many of use don't have any parents help and didn't have generational wealth like some Americans do. Some focused on. careers and achievements less than just saving money.

[Anonymous]

The people on this board who complain about FA going to families with considerable income are just idiots who haven’t thought it through.

The point of FA is not to buy poor friends for rich kids.

Schools, even highly selective ones, need to distribute FA in order to build a community with a reasonable range of families incomes.

A school of all full pay families and then a handful of low income scholarship kids is not going to be a healthy place.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The airplane seat analogy is just wrong. Please stop repeating it ad nauseam. That has nothing to do with financial aid.

It’s no more inaccurate than the people repeating ad nauseam that financial aid is only for the poor.

More of it should be for the poor. But the full pay families don’t actually want that, do you?

The plane analogy is bad.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There are two forms of "financial aid" in play.

The first is for people who are legitimately poor, or at least sufficiently poor.

The second is what amounts to price discrimination. Cost of flying a half-full airplane is negligibly different from flying a full airplane, so airplanes will offer special deals in order to fill them up. Same with schools: marginal cost of an additional student is low, thus they offer discounts.

In theory I agree with you but some of the big schools giving aid are turning kids away. They are not filling seats that would have otherwise gone empty.

But they are filling seats with kids they think are desirable, who will help keep the status of the school higher than full pay dummies.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.[/quote

Totally reasonable to expect someone to save 500k in a taxable brokerage pre kids (while also saving for retirement, a house, and paying off debt)…

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

You cannot sustainably withdraw 10% from a portfolio. The first down year and you are screwed. It also leaves no room for capital appreciation so 13 years on you would be drawing $50k while tuition is way higher.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

You cannot sustainably withdraw 10% from a portfolio. The first down year and you are screwed. It also leaves no room for capital appreciation so 13 years on you would be drawing $50k while tuition is way higher.

That was not meant to be taken literally. Within the context of portfolio with annual variation in returns, and a high growth rate, you can see how tuition becomes negligible at some point.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

You cannot sustainably withdraw 10% from a portfolio. The first down year and you are screwed. It also leaves no room for capital appreciation so 13 years on you would be drawing $50k while tuition is way higher.

That was not meant to be taken literally. Within the context of portfolio with annual variation in returns, and a high growth rate, you can see how tuition becomes negligible at some point.

It’s absurd to think that a typical 20-something or even young 30-something could save 500k before private school before they have kids. Most are paying off student loans, saving for retirement, and saving for a down payment.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

You cannot sustainably withdraw 10% from a portfolio. The first down year and you are screwed. It also leaves no room for capital appreciation so 13 years on you would be drawing $50k while tuition is way higher.

That was not meant to be taken literally. Within the context of portfolio with annual variation in returns, and a high growth rate, you can see how tuition becomes negligible at some point.

It’s absurd to think that a typical 20-something or even young 30-something could save 500k before private school before they have kids. Most are paying off student loans, saving for retirement, and saving for a down payment.

The typical parent will not send their kids to private schools. That is what public schools are for.

You can keep making excuses, but most parents in private school found a way to make it work. Saving money while in your 20s and 30s, before major expenses kick in, is actually quite easy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

You cannot sustainably withdraw 10% from a portfolio. The first down year and you are screwed. It also leaves no room for capital appreciation so 13 years on you would be drawing $50k while tuition is way higher.

That was not meant to be taken literally. Within the context of portfolio with annual variation in returns, and a high growth rate, you can see how tuition becomes negligible at some point.

It’s absurd to think that a typical 20-something or even young 30-something could save 500k before private school before they have kids. Most are paying off student loans, saving for retirement, and saving for a down payment.

The typical parent will not send their kids to private schools. That is what public schools are for.

You can keep making excuses, but most parents in private school found a way to make it work. Saving money while in your 20s and 30s, before major expenses kick in, is actually quite easy.

My HHI is 800k/yr and my kid isn’t in school yet. I won’t ever get aid and don’t care to. You were specifically saying that a family making 300k/yr should be able to have set aside 500k for private school before their kid starts school. That’s completely unrealistic.

Many families with those household incomes didn’t start there. They often graduate significantly in the negative, too. And then, as I said, they have other more important savings goals. It’s ridiculous to think they should 500k set aside outside of taking care of all their other financial needs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

So? Some people can only afford paycheck to paycheck. Many of use don't have any parents help and didn't have generational wealth like some Americans do. Some focused on. careers and achievements less than just saving money.

Yes some people are bad with money and financially irresponsible.

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Anonymous wrote:I truly don’t get - or believe - the math behind the claims being made by posters that they can afford $30K-plus tuition per child without financial aid and they make $300K or less.

Show me the math and your budget. I am a single parent living in an old 1,500 sf home in Silver Spring who shops at Aldi and Costco and 75% of our clothes are consignments or hand me downs or very old, have a paid off older car, no restaurants or even fast food, our vacations are usually road trips to visit family, and kids in relatively inexpensive extracurriculars (no travel soccer or fencing or ice skating), and there’s no frigging way I could afford private for one child let alone two. And I make $250K a year.

Between the taxes, 401k, and the cost of my health insurance premiums, nearly half of my paycheck is gone before it hits my bank account. Then I’m contributing to 529s and putting away something for savings - barely. Still need some childcare for the summer time - usually county camps - and I save for that all year. There would not be any room for $3,000 per month after taxes for private school.

Would just love to see the actual breakdown of your budgets for those claiming they can swing private school for one or more kids and they aren’t pulling in at least $350k a year.

While I don't know about other people, I set myself up financially before having kids. Nothing was handed to me and I earned it through early savings and strategic planning. For most people, this would be things like real estate investment or financial investments that may or may not generate much taxable income on an annual basis. Annual income on taxes does not necessarily reflect wealth.

Agree with you. But we have multiple posters saying they make it work making under $300k a year as if they do it on salary / income alone. If that’s the case - and again, hard to make that math work if we are talking post tax tuition of $30k per kid - then would love to see how people are doing it.

If you have other income beyond income or a trust or a parent who who pays part of tuition than that’s not truly making it on salary alone.

Most of us assume responsible adults have built up some wealth by the time they have kids. Therefore if you have a $300k salary we would assume your investments on the side are pretty healthy too. Making it on salary alone is like living paycheck to paycheck.

They would be nowhere near what’s necessary to cover 13 years of $45k+ tuition or anything close to it. Especially with more than one kid.

Speak for yourself. Approximately 10% annual return on $500k would cover it with just interest for one kid.

You cannot sustainably withdraw 10% from a portfolio. The first down year and you are screwed. It also leaves no room for capital appreciation so 13 years on you would be drawing $50k while tuition is way higher.

That was not meant to be taken literally. Within the context of portfolio with annual variation in returns, and a high growth rate, you can see how tuition becomes negligible at some point.

It’s absurd to think that a typical 20-something or even young 30-something could save 500k before private school before they have kids. Most are paying off student loans, saving for retirement, and saving for a down payment.

The typical parent will not send their kids to private schools. That is what public schools are for.

You can keep making excuses, but most parents in private school found a way to make it work. Saving money while in your 20s and 30s, before major expenses kick in, is actually quite easy.

My HHI is 800k/yr and my kid isn’t in school yet. I won’t ever get aid and don’t care to. You were specifically saying that a family making 300k/yr should be able to have set aside 500k for private school before their kid starts school. That’s completely unrealistic.

Many families with those household incomes didn’t start there. They often graduate significantly in the negative, too. And then, as I said, they have other more important savings goals. It’s ridiculous to think they should 500k set aside outside of taking care of all their other financial needs.

I'm telling you that private school isn't for most people. I would only recommend it for people who can pay the tuition easily. I'm describing who these people are. They exist because I know many.