HHI to send 2 kids to private w/o FA?

[Anonymous]

We make about 225k and have a 5k per month mortgage. We can only pull it off with grandparents paying for one tuition and financial aid covering 1/3 of the other (leaves us 2500 per month in tuition payments). We also have almost free healthcare with no insurance premiums. For us to be good to go without help (knowing we have a high mortgage), I'd say we would need to pull in 300k per year. To do it AND save well, 350k per year.

[Anonymous]

Anonymous wrote:We make about 225k and have a 5k per month mortgage. We can only pull it off with grandparents paying for one tuition and financial aid covering 1/3 of the other (leaves us 2500 per month in tuition payments). We also have almost free healthcare with no insurance premiums. For us to be good to go without help (knowing we have a high mortgage), I'd say we would need to pull in 300k per year. To do it AND save well, 350k per year.

It is good to hear that you think you'd be able to do it on $300K. The $500K figure that other PPs have suggested seems really high.

[Anonymous]

Yes but they have help from the grandparents

[Anonymous]

Anonymous wrote:I agree with the $500K number for 2 kids in private school.
The 23:27 poster is grossly underestimating monthly living expenses to be $2,000. $3-4K is much more realistic. Plus, you need to be saving for retirement, savings and college.

I agree with this. Our HHI is about 275K, we have no student loans and about a 400k mortgage, and we would feel financially strapped paying 40K for one child. We'd have to cut back on things in order to continue to save for college & retirement with tuition at this level.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I agree with the $500K number for 2 kids in private school.
The 23:27 poster is grossly underestimating monthly living expenses to be $2,000. $3-4K is much more realistic. Plus, you need to be saving for retirement, savings and college.

I agree with this. Our HHI is about 275K, we have no student loans and about a 400k mortgage, and we would feel financially strapped paying 40K for one child. We'd have to cut back on things in order to continue to save for college & retirement with tuition at this level.

What's your monthly mortgage amount?

[Anonymous]

Sorry 8:09, but we make $350K with a $5K monthly mortgage and could not afford to send two kids to top $35-40K school. Between tuition and mortgage we were not left with much for insurance, taxes, cost of living, etc. Had to stop paying the insane tuition - even though education was a top priority, it was just more than we could afford. Don't forget - it goes up every year also!

[Anonymous]

We made 350 and wanted to consider private. We could only afford it if we stopped saving for retirement and college. I can't help but wonder who goes to private school? It is so expensive!

[Anonymous]

We make ~$400k a year with $5,000 monthly mortgage. We have two kids in private school (not top tier but no financial aid). We max out retirement, have 1 car, do not go on vacations other than to visit family, and have zero liquidity right now because we are recovering from massive real estate losses in a few years ago in another state. Things are tough now and it is scary having almost no liquidity. In a couple of years we will be able to start having liquid savings and they will build quickly (all things being equal) but we have daily discussions about whether private school is the right path for the family as a whole.

[Anonymous]

Thanks to those who have posted.

I was hoping that, with an HHI of $350,000, we should be able to afford to send 2 kids to private school (total of $78,000 per year in tuition). But I'm realizing it's not realistic. It takes both DH and me working full time to earn that, which means we still have expenses for a sitter to be with them after school (mainly to drive them to activities and oversee homework). And we even have a small mortgage because we have a small house that we bought in 2002 in Bethesda (BCC cluster, not Whitman) where the schools are decent.

I recall someone posting on a thread last year about how to pay tuition of $70,000, you basically have to earn $150,000 just to pay the tuition (after taxes). I thought that was a helpful way to look at it. It made me realize it was not realistic for us to go private for both kids.

We haven't considered applying for FA because I figure we would be rejected (and should be rejected) because we technically can afford it if we don't save for retirement, etc. (We're lucky to have gotten grandparent help and so don't need to save for college.)

Still wish we could send both kids to private! I even contemplated borrowing from my 401(k) to pay tuition, but then came to my senses.

[Anonymous]

Anonymous wrote:Thanks to those who have posted.

I was hoping that, with an HHI of $350,000, we should be able to afford to send 2 kids to private school (total of $78,000 per year in tuition). But I'm realizing it's not realistic. It takes both DH and me working full time to earn that, which means we still have expenses for a sitter to be with them after school (mainly to drive them to activities and oversee homework). And we even have a small mortgage because we have a small house that we bought in 2002 in Bethesda (BCC cluster, not Whitman) where the schools are decent.

I recall someone posting on a thread last year about how to pay tuition of $70,000, you basically have to earn $150,000 just to pay the tuition (after taxes). I thought that was a helpful way to look at it. It made me realize it was not realistic for us to go private for both kids.

We haven't considered applying for FA because I figure we would be rejected (and should be rejected) because we technically can afford it if we don't save for retirement, etc. (We're lucky to have gotten grandparent help and so don't need to save for college.)

Still wish we could send both kids to private! I even contemplated borrowing from my 401(k) to pay tuition, but then came to my senses.

i am the immediate PP here. you could pick a few years that you feel private would really benefit your children (elementary vs middle vs high school). we are doing it for elementary for a variety of reasons, and other people feel differently. we will take middle and high school as it comes (we live in D.C. by the way).

[Anonymous]

Anonymous wrote:We make about 225k and have a 5k per month mortgage. We can only pull it off with grandparents paying for one tuition and financial aid covering 1/3 of the other (leaves us 2500 per month in tuition payments). We also have almost free healthcare with no insurance premiums. For us to be good to go without help (knowing we have a high mortgage), I'd say we would need to pull in 300k per year. To do it AND save well, 350k per year.

First, I get heart palpitations that you pay 5k in mortgage on that HHI. We're a bit lower but with less than half that mortgage and I couldn't imagine going that high. I mean, this isn't a criticism; just me saying that I'm nervous on your behalf!

But if 1/3 of your other tuition is $2500, then the the tuition is $7500? Per month?

[Anonymous]

Quick question (I just discovered this forum)- when people say HHI- is the figure net of taxes or is it gross. Thanks

[Anonymous]

Were at 500k and def feel the pinch!

[Anonymous]

Anonymous wrote:Quick question (I just discovered this forum)- when people say HHI- is the figure net of taxes or is it gross. Thanks

Gross

[Anonymous]

Anonymous wrote:

Anonymous wrote:We make about 225k and have a 5k per month mortgage. We can only pull it off with grandparents paying for one tuition and financial aid covering 1/3 of the other (leaves us 2500 per month in tuition payments). We also have almost free healthcare with no insurance premiums. For us to be good to go without help (knowing we have a high mortgage), I'd say we would need to pull in 300k per year. To do it AND save well, 350k per year.

First, I get heart palpitations that you pay 5k in mortgage on that HHI. We're a bit lower but with less than half that mortgage and I couldn't imagine going that high. I mean, this isn't a criticism; just me saying that I'm nervous on your behalf!

But if 1/3 of your other tuition is $2500, then the the tuition is $7500? Per month?

No, they said that financial aid covers 1/3 of the other tuition, so PP is paying 2500/mo for 2/3 of tuition cost.