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How much are you saving for college?
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Anonymous
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I have a 2.5 year old and I've saved about $250/month since she was born. Her dad is saving a similar amount for her. I'm hoping to increase that once she's in kindergarten and we're not paying preschool tuition. She's the only grandchild on one side, so we may have college help from the grandparents.
I went to college on full-tuition scholarship; hopefully she'll have some options there. |
Anonymous
Then everybody is in a pickle, since our retirement savings would also be impacted by that interruption, and we would probably have a dramatic shift in our lifestyle since available disability insurance doesn't come close to making up our full salaries. I don't agree that college savings should be the top priority even over ensuring that I don't have to work until I am 95. |
Anonymous
| offtopic, but does anyone know a good retirement calculator based on expenses rather than gross income? |
Anonymous
| Is anyone using the Maryland prepaid tuition plan? I'm thinking about it, but then again, if the bubble bursts, it may not be such a good deal any more... |
Anonymous
We are using the MD prepaid plan, but supplementing with some saving on the side. |
Anonymous
I'm jealous. Do you both have high earning incomes? I wish I could do the same. |
Anonymous
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We have about 25K in a 529, and another 35K in other investments that is earmarked for college expenses, but can be used for other purposes in an emergency. One child, 4.5. As college gets closer, we'll move the non-dedicated funds into the 529, so it won't impact FAFSA financial aid decisions (at least, not as much). Saving $7200 per year, plus gifts from grandparents, etc. We should be fine - from this point on, at the same savings rate, we'll contribute another $100k before college, in addition to the $60k we have now and any earnings on the contributions.
Although I agree that retirment and other savings shoudl be the top priority, if you have the means, dumping a chunk of money into a 529 or other account when your child is young is a great idea. |
Anonymous
Yes, we make a lot and live frugally. Had kids late in life and bought our house before the prices rose in 2000 and beyond. Just lucky timing. |
Anonymous
WSJ (I think) had an article on the prepaids, and there is some issue in Illinois - that could be a challenge other places- I think the consensus was not to do prepaid, but instead to do the investments. |
Anonymous
| 10K per year for each of our 2 kids. We also plan to have paid off our mortgage when the oldest starts college. It would be easier if we weren't also paying two private school tuitions right now also. |
Anonymous
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NONE
I am lucky if I can make all my student loan payments each month without dipping into my pitiful savings. DH and I are 27 with two kids, college costs are outrageous. |
Anonymous
Pre-paid tuition plans are truly the worst kind of college funding plan. Talk about lack of flexibility! and you're totally negotiating against yourself. If you research it, you will be hard-pressed to find much positive press on pre-paid tuition plans. Not to mention, I work in the college financial planning industry and see first hand the number of VERY BRIGHT seniors - we're talking 4.2 GPA, Blair Magnet, tons of extra-curricullars getting outright rejection letters from Maryland - College Park. Same thing is happening in California's UC system. All these kids are being forced to go out-of-state....ouch! |
Anonymous
I am not considering it because I think DC will go to a Maryland state school. I went to a small private college far away from home and would probably encourage her to do the same. However, I understand that, with the MD plan, the money can be used for any college anywhere in the country. I would supplement with other savings. But the idea of college savings that is not too sensitive to market fluctuations appeals to me. What didn't I take into account? |
Anonymous
You clearly don't know what you are talking about, at least with respect to the MD prepaid plan. MD's plan is unusual in that there is no penalty at all for going out of state (or going in state private)-- you get the weighted average tuition paid by UMD students to spend wherever you want (there are slight variations in tuition throughout the UMD system but this works out to be essentially the College Park tuition). I did a lot of research and I don't listen to generalities that apply to other plans, I look at the specifics of the plan I am offered and weigh the risks and benefits. |
Anonymous
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interesting info on pre-paid plans and on MD specifically.
http://www.ricedelman.com/cs/education/article?articleId=200&titleParam=Told%20Ya%20So. http://www.bankrate.com/brm/news/529/20060612a1.asp |