I’m really surprised how many people don’t save for college

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I hate when people say Only go to public school. My kid went to public primary school and is going to a public in state university. We paid off our debts and didn’t fund college. That is totally on him.

Same. Many of our friends that went to VA state colleges (the horror!) are making 7 figures.

I know 2 Towson U grads who were multi-millionaires by 40. I'd call that successful. They are where they are in life because of their drive and determination---didn't need to attend HYP to achieve success (I Know, shocking, isn't it)

And my spouse and I went to Ivies and arent anywhere near even $200k because we were dumb and went after "passion" jobs. A school is not a guarantee!

We do save for our kids' college, but there is absolutely no way we'll have enough. That said, day care costs as much as in state tuition and we pay that out of cash flow, so it doesn't seem too dire. Kids won't be able to go to any private school in the country, but if they're smart enough to get in somewhere with amazing financial aid (the Ivies are generous to the middle class), or to compete successfully for tuition exchange at a non-elite school (one of us works for a small private university that's part of a network), they will have some options.

But my in laws who clearly make more than us, and seem to spend it like water on a pretty basic but heavily consumerist middle class lifestyle? They have not saved. I mean, they spend it all, what more do you want people to tell you about that?

[Anonymous]

This is us! We didn't save and pay out of our income and live in DC and have 4 kids. We really didn't make Mo ey to save beyond retirement until a few years ago. We make more now and can cover OOS tuition for 2 currently. We will have 3 in college next year so will stretch to make it happen. That will be our only year with 3 in college at the same time. We are good though. You don't have to worry about us. Good news is that our retirement is ridiculously funded. So by the time I am 53 and my DH is 54 we will be fully retired and have one kid with one more year of college. He can get a loan for that since we will be doing nothing all day every day.

[Anonymous]

Anonymous wrote:The answer is pretty simple. A 529 is a tax-deferred savings vehicle, but so is my 401k and my wife’s 401k. If I have limited savings, I’m going to max out my 401k before funding a 529. Also, if you fund a Roth, you can take money from there before 59 1/2 for education. Finally, VA has great in-state colleges. Go to one and you’ve already saved a ton relative to your friend who sent their kid to a no-name SLAC. At $300-400k, I can cash flow a public, in-state school. The only people who must save for college are those who seek the right “fit” at an overly expensive college. You may think that’s worth it, but a lot of people don’t.

This.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to be retired when my first gets to college age. Not really saving specifically for college. Will also not have much funds in liquid accounts. Net worth would be in real estate. Income when Retired will be 40k, so we should get a good financial aid package. 2 kids 2 years apart.

I know a guy who got to go to college for free because his single mom got laid off right before he went to college. The timing worked out well. Because his mom’s income was 0, his tuition was 0 and he was a RA and housing was also free.

If the mom got a new job, I’m sure they would have had to take out a lot of loans.

Exactly. If you know what financial aid need calculation is based on, it is somewhat easy to work it to your advantage. When my kid is 16, all my funds will be in retirement accounts or real estate or low annual pension. We will be low income and need financial aid even net worth should be around 3.5M.

l

Happy with that, you cheater? Don’t be so smug. The most elite colleges - with their proprietary aid formulas and CSS profiles - see right through those games.

[Anonymous]

Anonymous wrote:The answer is pretty simple. A 529 is a tax-deferred savings vehicle, but so is my 401k and my wife’s 401k. If I have limited savings, I’m going to max out my 401k before funding a 529. Also, if you fund a Roth, you can take money from there before 59 1/2 for education. Finally, VA has great in-state colleges. Go to one and you’ve already saved a ton relative to your friend who sent their kid to a no-name SLAC. At $300-400k, I can cash flow a public, in-state school. The only people who must save for college are those who seek the right “fit” at an overly expensive college. You may think that’s worth it, but a lot of people don’t.

That was our approach and we were denied FA due to the size of our retirement accounts. Proceed at your own risk.

[Anonymous]

I work just to save for college. DH makes enough to support us but doesn’t want to save, which is the primary reason I don’t quit my job to be a SAHM. I’m not complaining (too much), it’s a first world situation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The answer is pretty simple. A 529 is a tax-deferred savings vehicle, but so is my 401k and my wife’s 401k. If I have limited savings, I’m going to max out my 401k before funding a 529. Also, if you fund a Roth, you can take money from there before 59 1/2 for education. Finally, VA has great in-state colleges. Go to one and you’ve already saved a ton relative to your friend who sent their kid to a no-name SLAC. At $300-400k, I can cash flow a public, in-state school. The only people who must save for college are those who seek the right “fit” at an overly expensive college. You may think that’s worth it, but a lot of people don’t.

That was our approach and we were denied FA due to the size of our retirement accounts. Proceed at your own risk.

We don’t expect FA. Our kids will attend instate schools and we will cash flow the relatively low bill.

[Anonymous]

The real issue is what a scam college is in the first place. Total ripoff.

[Anonymous]

Anonymous wrote:We know so many people who live lavish lifestyles and end up not having enough saved to pay for college. These same people earn too much to qualify for financial aid. It is one thing to struggle financially and then your kid will likely receive a good financial aid package. I’m talking people who earn 200, 300, 400k+. I think what surprises me the most are those who paid for private school k-12 at the expense of college savings and retirement.

I feel bad for those kids who are told they have to take out $$$ loans or only go to public college.

If you cannot full pay and don’t qualify for financial aid, I wonder why college was not the priority.

I reckon people have different circumstances and priorities.

[Anonymous]

Private colleges are affordable for rich and poor but too expensive for donut hole families. Some of them make sacrifices and make it happen, others prioritize a nicer lifestyle and cushy retirement. To each, its own.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This was 20 years ago, but I paid for my own college with a part time job. My parents paid about $1500 total. State school. No debt after college.

Wow! Where did you go to college?
I was in college 25+ years ago, and my parents also did not pay. It was a state school, but in a relatively HCOL area. I worked full time while going to school just to pay for basic living expenses, tuition, and books.

Sounds like California back in the day

[Anonymous]

Anonymous wrote:Private colleges are affordable for rich and poor but too expensive for donut hole families. Some of them make sacrifices and make it happen, others prioritize a nicer lifestyle and cushy retirement. To each, its own.

Succinctly and well said. This is my answer as well. Our kids went to UVA and we cash flowed it. No school debt. Lots of retirement savings. We’re fine.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to be retired when my first gets to college age. Not really saving specifically for college. Will also not have much funds in liquid accounts. Net worth would be in real estate. Income when Retired will be 40k, so we should get a good financial aid package. 2 kids 2 years apart.

I know a guy who got to go to college for free because his single mom got laid off right before he went to college. The timing worked out well. Because his mom’s income was 0, his tuition was 0 and he was a RA and housing was also free.

If the mom got a new job, I’m sure they would have had to take out a lot of loans.

Exactly. If you know what financial aid need calculation is based on, it is somewhat easy to work it to your advantage. When my kid is 16, all my funds will be in retirement accounts or real estate or low annual pension. We will be low income and need financial aid even net worth should be around 3.5M.

l

Happy with that, you cheater? Don’t be so smug. The most elite colleges - with their proprietary aid formulas and CSS profiles - see right through those games.

Hahaha +1
Esp CSS gets down to the nitty-gritty

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I plan to be retired when my first gets to college age. Not really saving specifically for college. Will also not have much funds in liquid accounts. Net worth would be in real estate. Income when Retired will be 40k, so we should get a good financial aid package. 2 kids 2 years apart.

I know a guy who got to go to college for free because his single mom got laid off right before he went to college. The timing worked out well. Because his mom’s income was 0, his tuition was 0 and he was a RA and housing was also free.

If the mom got a new job, I’m sure they would have had to take out a lot of loans.

Exactly. If you know what financial aid need calculation is based on, it is somewhat easy to work it to your advantage. When my kid is 16, all my funds will be in retirement accounts or real estate or low annual pension. We will be low income and need financial aid even net worth should be around 3.5M.

l

Happy with that, you cheater? Don’t be so smug. The most elite colleges - with their proprietary aid formulas and CSS profiles - see right through those games.

Hahaha +1
Esp CSS gets down to the nitty-gritty

Ha ha.. my child will not go to CSS colleges. Boom.

[Anonymous]

Majority gets financial aid or merit scholarships and attends state schools.