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

[Anonymous]

I'm really much more surprised how many peolple pay $$$ for shitty majors/degree

[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.

You do you OP. Mind your business.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sigh. Stop trolling.

I’m not trolling. I’m genuinely surprised how shortsighted people are with relatively high incomes. If you had a lower income, you would qualify for financial aid.

I’m specifically thinking of people who dress well, drive nice cars, vacation often, kids do expensive extracurricular activities, maybe go to private school. They have UMC lifestyles and didn’t save for college.

My family doesn't live large, but we don't have a lot saved for college. The reason being that I was a SAHM for several years. The plan was to live on one salary, for me to start working again when the oldest was in high school, and for us to devote my salary to college. An older colleague executed this plan perfectly. Then my husband died. Things happen.

[Anonymous]

Anonymous wrote:I don’t understand saving for college.

We just pay for it out of our income.

We only make $250 but $60K / year is not that big of a deal once your kid did private school for 12 years. It’s just part of the budget.

That’s also what I think, although we have 529’s. When our kids were in daycare we were paying 30k per year, why can’t we just do it again? (Granted that means choosing an in-state school and not retiring early).

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t understand saving for college.

We just pay for it out of our income.

We only make $250 but $60K / year is not that big of a deal once your kid did private school for 12 years. It’s just part of the budget.

That’s also what I think, although we have 529’s. When our kids were in daycare we were paying 30k per year, why can’t we just do it again? (Granted that means choosing an in-state school and not retiring early).

Exactly this. I paid 30k a year in daycare without any advance saving. I also ate ramen a lot during those years. College should be so much easier to pay as I go because I actually make more money know, and have savings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t understand saving for college.

We just pay for it out of our income.

We only make $250 but $60K / year is not that big of a deal once your kid did private school for 12 years. It’s just part of the budget.

That’s also what I think, although we have 529’s. When our kids were in daycare we were paying 30k per year, why can’t we just do it again? (Granted that means choosing an in-state school and not retiring early).

Exactly. At the income levels OP mentioned the sensible thing is to cash flow it. People might moan, but it's some sort of humble brag. They'll also brag about any discount, even if they know it's a drop in the bucket, and something everyone gets. It's just not possible to understand anyone else's finances from what they say casually.

[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.

Not everyone makes that much. People in the 100-250k are screwed bc they don’t qualify for aid and might not be able to afford college for two kids at the same time.

[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.

If they are used to paying for private, they should be able to continue that cash flow and pay for in state without much issue.

[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.

Not everyone makes that much. People in the 100-250k are screwed bc they don’t qualify for aid and might not be able to afford college for two kids at the same time.

we were able to do that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, so I guess I’m ‘one of those people’. I’m a single parent that’s made 200+ since my kids were born. I save $1,500 per child per month and - guess what - that’s still not enough.

Why? Why, you ask? Why am I not saving more? Because I want to retire at 62. I want to live in a modest house and travel internationally. I want to support my kids in their (expensive) activities. I want them to live independently at an amazing camp in Maine 4 weeks every summer so they can meet people outside our suburban town. I want to enjoy dinners out with them, and theatre, and fun days at the spa.

So yes, op. My measly $1,500 will not be sufficient and we will not qualify for financial aid. But you know what? I was raised with a work ethic that allowed me to pay off 6 figure debt. This is not what I want my kids to face, but if they do, I’d like to think they have the work ethic and possibly my support to pay it off.

Ummm...so I don't think the OP is talking about someone saving $18K per year per kid.

+1 you should have a minimum of 400 K if this money is in an interest-bearing account

I was thinking the same. We make under $140k but started saving when kids were 10 and 8. $100/mo and occasional larger chunks ($500-1000) when we have the money. This includes some of their earnings too.

We are hoping to save enough for $40k/yr coa. They should each have about 80-120k by start of college in 529, and we will still have some time to save/pay for jr/sr yr. 1st got need aid at CSS school. 2nd will need to do the same or get significant merit or go instate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, so I guess I’m ‘one of those people’. I’m a single parent that’s made 200+ since my kids were born. I save $1,500 per child per month and - guess what - that’s still not enough.

Why? Why, you ask? Why am I not saving more? Because I want to retire at 62. I want to live in a modest house and travel internationally. I want to support my kids in their (expensive) activities. I want them to live independently at an amazing camp in Maine 4 weeks every summer so they can meet people outside our suburban town. I want to enjoy dinners out with them, and theatre, and fun days at the spa.

So yes, op. My measly $1,500 will not be sufficient and we will not qualify for financial aid. But you know what? I was raised with a work ethic that allowed me to pay off 6 figure debt. This is not what I want my kids to face, but if they do, I’d like to think they have the work ethic and possibly my support to pay it off.

Ummm...so I don't think the OP is talking about someone saving $18K per year per kid.

+1 you should have a minimum of 400 K if this money is in an interest-bearing account

I was thinking the same. We make under $140k but started saving when kids were 10 and 8. $100/mo and occasional larger chunks ($500-1000) when we have the money. This includes some of their earnings too.

We are hoping to save enough for $40k/yr coa. They should each have about 80-120k by start of college in 529, and we will still have some time to save/pay for jr/sr yr. 1st got need aid at CSS school. 2nd will need to do the same or get significant merit or go instate.

You get less aid if you saved up money for college

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, so I guess I’m ‘one of those people’. I’m a single parent that’s made 200+ since my kids were born. I save $1,500 per child per month and - guess what - that’s still not enough.

Why? Why, you ask? Why am I not saving more? Because I want to retire at 62. I want to live in a modest house and travel internationally. I want to support my kids in their (expensive) activities. I want them to live independently at an amazing camp in Maine 4 weeks every summer so they can meet people outside our suburban town. I want to enjoy dinners out with them, and theatre, and fun days at the spa.

So yes, op. My measly $1,500 will not be sufficient and we will not qualify for financial aid. But you know what? I was raised with a work ethic that allowed me to pay off 6 figure debt. This is not what I want my kids to face, but if they do, I’d like to think they have the work ethic and possibly my support to pay it off.

Ummm...so I don't think the OP is talking about someone saving $18K per year per kid.

+1 you should have a minimum of 400 K if this money is in an interest-bearing account

If pp had invested $18,000 a year at the DJIA beginning in 2003, the account would have been worth $830,000 in 2021. Even with stock market losses in the last year, the account should still be almost $700,000 per child. That’s enough for college and graduate school.

[Anonymous]

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.

My DH and I both did this, but we are smart enough to realize that this is no longer possible.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, so I guess I’m ‘one of those people’. I’m a single parent that’s made 200+ since my kids were born. I save $1,500 per child per month and - guess what - that’s still not enough.

Why? Why, you ask? Why am I not saving more? Because I want to retire at 62. I want to live in a modest house and travel internationally. I want to support my kids in their (expensive) activities. I want them to live independently at an amazing camp in Maine 4 weeks every summer so they can meet people outside our suburban town. I want to enjoy dinners out with them, and theatre, and fun days at the spa.

So yes, op. My measly $1,500 will not be sufficient and we will not qualify for financial aid. But you know what? I was raised with a work ethic that allowed me to pay off 6 figure debt. This is not what I want my kids to face, but if they do, I’d like to think they have the work ethic and possibly my support to pay it off.

Ummm...so I don't think the OP is talking about someone saving $18K per year per kid.

+1 you should have a minimum of 400 K if this money is in an interest-bearing account

I was thinking the same. We make under $140k but started saving when kids were 10 and 8. $100/mo and occasional larger chunks ($500-1000) when we have the money. This includes some of their earnings too.

We are hoping to save enough for $40k/yr coa. They should each have about 80-120k by start of college in 529, and we will still have some time to save/pay for jr/sr yr. 1st got need aid at CSS school. 2nd will need to do the same or get significant merit or go instate.

You get less aid if you saved up money for college

A family that makes $140,000 a year (and chances are that they’ll make more by the time the kids are actually applying to college) is not getting financial aid (unless the kid gets into Harvard, and good luck with that).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ok, so I guess I’m ‘one of those people’. I’m a single parent that’s made 200+ since my kids were born. I save $1,500 per child per month and - guess what - that’s still not enough.

Why? Why, you ask? Why am I not saving more? Because I want to retire at 62. I want to live in a modest house and travel internationally. I want to support my kids in their (expensive) activities. I want them to live independently at an amazing camp in Maine 4 weeks every summer so they can meet people outside our suburban town. I want to enjoy dinners out with them, and theatre, and fun days at the spa.

So yes, op. My measly $1,500 will not be sufficient and we will not qualify for financial aid. But you know what? I was raised with a work ethic that allowed me to pay off 6 figure debt. This is not what I want my kids to face, but if they do, I’d like to think they have the work ethic and possibly my support to pay it off.

Adding to PP's poignant description, I will add that it's a shitty country that makes people choose between enjoying their hard-earned income, and tightening their belts to send the next generation to earn their expensive degrees.

Other wealthy nations subsidize universities and lower tuition costs. The USA should do the same.

But it is not always rainbows and unicorns in other countries. The European model does allow for gov't subsidies for university but guess what? Not everyone gets to attend one. Students are tracked in high school (or younger) and those who score well attend and those who do not or are late bloomers, well, no university for them. The US system has plenty of flaws but only having a restricted number of seats is not one of them.

That sounds more fair than high stat kids from donut hole families not able to afford top schools here

Fair? Your kid has no right to attend an expensive college. It is a LUXURY item like a Porsche. “Donut hole families” is a made up thing that people use to feel better about not being able to pay for their kids to attend private colleges. You are bitter and jealous of families that are richer than you and can afford to write the tuition check without a second thought.

You are stating exactly how it is unfair, top colleges are for rich kids only

Life is not fair. Instead of using that as an excuse, have your kid (and yourself) focus on finding the best college for your kid that you can afford!
Your kid can attend any of the other 100s of colleges they can afford. We are not saying your kid doesn't get to attend college. They just get to attend one they can afford. They will still get an amazing education anywhere they attend, if they put in the effort.

IMO--many "donut hole" families made the choice not to save or not save enough (not all are like this, some just came into the higher income level recently, but many made choices ). Back when our kids were young, we made decent money, but we were single income (Gave up an almost 6 figure income to stay home), we made choices so we could save. We lived in less of a home in a decent but not "top schools" so we could easily afford it and still save for college, vacations, etc. Our vacations were largely only $2-3K/year until our kids were 5-8yo. So we could afford to save for college and our retirement. We chose activities wisely and focused on quality over quantity. All so we could save for the future. Had we lived life to the fullest, we likely would not have saves enough for college.