MS parents: How much have you saved for college (529, etc.)?

[Anonymous]

$0.00.

When my kids were born I sat down and did the math on how much money I would have to save each month in order to pay for their college, accounting for the trending rise in tuition and the force devaluation of the dollar. I literally would have had our family living on bread and water in a shack. It came out to well over half of all our pre-tax pay, every month, every year, with no room for emergencies.

We decided instead to take some of that same money and put our kids into Montessori school, so that they will have a solid foundation of real education and critical thinking, and most of all, be able to educate themselves. College will be something they choose, advance place for, get assistance, and I will help as I can with what I have then.

[Anonymous]

$280k total for 3rd and 6th grader. At $300k I’ll stop investing in the 529 accounts except for the tax write off.

[Anonymous]

Anonymous wrote:

BTDT. We moved in 2007 and ended up losing so much money on the house we sold in the recession. Then, I had medical issues and was unable to work for a few years. Result: we went into MS with no college savings. If your kid is in MS, it is not to late to start.

Kids are now 9th and 11th. They will each graduate with 4 years of VA prepaid 529. Worth about 70k if they don’t go instate. Starting there was the best thing I did. Started with older DC in 7th, and then a year later added DC2 in 6th. It looks like oldest DCs first choice is WM— and he has the stats to get in (hopefully). So that would be another windfall, because prepaid 529 covers tuition at any VA college, and WM is 10-15k a year more than other state schools.

My kids inherited $25k each from my grandmother last year, and that is obviously a windfall (I did not know they were in her will). And we will save about $20k per kid in cash in an INVEST Account on top of that before they start college. We started contributing to DC1 the year after starting Dc 2’s prepaid account. And DC2 just this year. So, we have pumped up the savings each year. That will cover in state tuition and about 3 years of room and board. We can cover the last year of room and board in cash. And will try to keep saving so that their inheritance stays intact.

And I can sleep at night, because no matter what happens with my health, the economy, college prices, etc., the kids can get a good instate college education with no debt as a worst case scenario. Since we were at zero 5 years ago, I’ll take it.

If the don’t go in state, they will have $110k-120k saved. We are currently chunking $3200 a month into the 529s. We plan to continue to contribute through college. So, we have told the oldest he would need to bring private or OOS public down to $40k a year, tuition and RB, using merit money. The youngest will probably be $45k because of increases in tuition. We are donut hole, so this means that they can’t apply to Ivy schools or NESCA schools with no merit aid. But he has some good options with midwestern SLACs where his stats are above 75%, plus WM plus VT science as a safety.

Younger kid is looking like she will head to a big engineering school— but it’s early. So, VT and OOS Public’s. We should be close, especially if she gets any merit money at all.

Now, we were able to free up the $3200 a month because I was able to go back to work the year before we started saving. Paid of credit cards, then turned to college. And about 60% of my take home right now goes to kids college. I realize that’s not everyone. But still, it’s not too late to start. And Prepaid 529 can be a good place to start. And it is open enrollment season for prepaid right now.

This is the anxious poster. Thanks for responding with this. Even though I know I won’t save a ton, hopefully I can’t get something in savings between now and then.

PP here. And I know the terrible, pit of your stomach, we’re way behind in savings feeling. It made me not save anything for a while, because nothing I did was going to completely solve the problem. And even though I have a solution now, I regret not doing more, sooner, and not being able to say to my kids, apply to an Ivy or Williams or Amherst, and if you get in, we can pay. We can’t. And I am not going to let them come out of college with debt. So, it is what it is.

I would encourage you to go, today, and over a 529 account online and set up an autodrat of something into it on the day(s) each month you get paid. Use a reputable 529 (VA has a good rating) and let them autobalance the account for you based on the year your kid will start college. Even $50 becomes $600 after a year becomes $3600 after 6 years. If you can swing $150, it would become more than $10,000 by the time a sixth grader graduates. Once you start, try to save a little more each year. If you cut down on a household expense, or your kid stops taking music lessons or you get a raise, put add the amount to the auto draft.

It can be hard to start. Especially if the thought of college expenses makes you anxious. But once you do, you will feel better, and it will be easier to keep it up and increase.

You got this!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

BTDT. We moved in 2007 and ended up losing so much money on the house we sold in the recession. Then, I had medical issues and was unable to work for a few years. Result: we went into MS with no college savings. If your kid is in MS, it is not to late to start.

Kids are now 9th and 11th. They will each graduate with 4 years of VA prepaid 529. Worth about 70k if they don’t go instate. Starting there was the best thing I did. Started with older DC in 7th, and then a year later added DC2 in 6th. It looks like oldest DCs first choice is WM— and he has the stats to get in (hopefully). So that would be another windfall, because prepaid 529 covers tuition at any VA college, and WM is 10-15k a year more than other state schools.

My kids inherited $25k each from my grandmother last year, and that is obviously a windfall (I did not know they were in her will). And we will save about $20k per kid in cash in an INVEST Account on top of that before they start college. We started contributing to DC1 the year after starting Dc 2’s prepaid account. And DC2 just this year. So, we have pumped up the savings each year. That will cover in state tuition and about 3 years of room and board. We can cover the last year of room and board in cash. And will try to keep saving so that their inheritance stays intact.

And I can sleep at night, because no matter what happens with my health, the economy, college prices, etc., the kids can get a good instate college education with no debt as a worst case scenario. Since we were at zero 5 years ago, I’ll take it.

If the don’t go in state, they will have $110k-120k saved. We are currently chunking $3200 a month into the 529s. We plan to continue to contribute through college. So, we have told the oldest he would need to bring private or OOS public down to $40k a year, tuition and RB, using merit money. The youngest will probably be $45k because of increases in tuition. We are donut hole, so this means that they can’t apply to Ivy schools or NESCA schools with no merit aid. But he has some good options with midwestern SLACs where his stats are above 75%, plus WM plus VT science as a safety.

Younger kid is looking like she will head to a big engineering school— but it’s early. So, VT and OOS Public’s. We should be close, especially if she gets any merit money at all.

Now, we were able to free up the $3200 a month because I was able to go back to work the year before we started saving. Paid of credit cards, then turned to college. And about 60% of my take home right now goes to kids college. I realize that’s not everyone. But still, it’s not too late to start. And Prepaid 529 can be a good place to start. And it is open enrollment season for prepaid right now.

This is the anxious poster. Thanks for responding with this. Even though I know I won’t save a ton, hopefully I can’t get something in savings between now and then.

PP here. And I know the terrible, pit of your stomach, we’re way behind in savings feeling. It made me not save anything for a while, because nothing I did was going to completely solve the problem. And even though I have a solution now, I regret not doing more, sooner, and not being able to say to my kids, apply to an Ivy or Williams or Amherst, and if you get in, we can pay. We can’t. And I am not going to let them come out of college with debt. So, it is what it is.

I would encourage you to go, today, and over a 529 account online and set up an autodrat of something into it on the day(s) each month you get paid. Use a reputable 529 (VA has a good rating) and let them autobalance the account for you based on the year your kid will start college. Even $50 becomes $600 after a year becomes $3600 after 6 years. If you can swing $150, it would become more than $10,000 by the time a sixth grader graduates. Once you start, try to save a little more each year. If you cut down on a household expense, or your kid stops taking music lessons or you get a raise, put add the amount to the auto draft.

It can be hard to start. Especially if the thought of college expenses makes you anxious. But once you do, you will feel better, and it will be easier to keep it up and increase.

You got this!

I’m always amazed by parents who won’t let their child make an educated decision on whether they can take on debt. Fortunately, my parents had open and honest conversations with me about the issue. I choose to take on debt so I could attend a college that was the best fit for me. As a result, I’m earning a healthy salary that I guarantee you I would never have earned if I went to a large, public university.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

BTDT. We moved in 2007 and ended up losing so much money on the house we sold in the recession. Then, I had medical issues and was unable to work for a few years. Result: we went into MS with no college savings. If your kid is in MS, it is not to late to start.

Kids are now 9th and 11th. They will each graduate with 4 years of VA prepaid 529. Worth about 70k if they don’t go instate. Starting there was the best thing I did. Started with older DC in 7th, and then a year later added DC2 in 6th. It looks like oldest DCs first choice is WM— and he has the stats to get in (hopefully). So that would be another windfall, because prepaid 529 covers tuition at any VA college, and WM is 10-15k a year more than other state schools.

My kids inherited $25k each from my grandmother last year, and that is obviously a windfall (I did not know they were in her will). And we will save about $20k per kid in cash in an INVEST Account on top of that before they start college. We started contributing to DC1 the year after starting Dc 2’s prepaid account. And DC2 just this year. So, we have pumped up the savings each year. That will cover in state tuition and about 3 years of room and board. We can cover the last year of room and board in cash. And will try to keep saving so that their inheritance stays intact.

And I can sleep at night, because no matter what happens with my health, the economy, college prices, etc., the kids can get a good instate college education with no debt as a worst case scenario. Since we were at zero 5 years ago, I’ll take it.

If the don’t go in state, they will have $110k-120k saved. We are currently chunking $3200 a month into the 529s. We plan to continue to contribute through college. So, we have told the oldest he would need to bring private or OOS public down to $40k a year, tuition and RB, using merit money. The youngest will probably be $45k because of increases in tuition. We are donut hole, so this means that they can’t apply to Ivy schools or NESCA schools with no merit aid. But he has some good options with midwestern SLACs where his stats are above 75%, plus WM plus VT science as a safety.

Younger kid is looking like she will head to a big engineering school— but it’s early. So, VT and OOS Public’s. We should be close, especially if she gets any merit money at all.

Now, we were able to free up the $3200 a month because I was able to go back to work the year before we started saving. Paid of credit cards, then turned to college. And about 60% of my take home right now goes to kids college. I realize that’s not everyone. But still, it’s not too late to start. And Prepaid 529 can be a good place to start. And it is open enrollment season for prepaid right now.

This is the anxious poster. Thanks for responding with this. Even though I know I won’t save a ton, hopefully I can’t get something in savings between now and then.

PP here. And I know the terrible, pit of your stomach, we’re way behind in savings feeling. It made me not save anything for a while, because nothing I did was going to completely solve the problem. And even though I have a solution now, I regret not doing more, sooner, and not being able to say to my kids, apply to an Ivy or Williams or Amherst, and if you get in, we can pay. We can’t. And I am not going to let them come out of college with debt. So, it is what it is.

I would encourage you to go, today, and over a 529 account online and set up an autodrat of something into it on the day(s) each month you get paid. Use a reputable 529 (VA has a good rating) and let them autobalance the account for you based on the year your kid will start college. Even $50 becomes $600 after a year becomes $3600 after 6 years. If you can swing $150, it would become more than $10,000 by the time a sixth grader graduates. Once you start, try to save a little more each year. If you cut down on a household expense, or your kid stops taking music lessons or you get a raise, put add the amount to the auto draft.

It can be hard to start. Especially if the thought of college expenses makes you anxious. But once you do, you will feel better, and it will be easier to keep it up and increase.

You got this!

I’m always amazed by parents who won’t let their child make an educated decision on whether they can take on debt. Fortunately, my parents had open and honest conversations with me about the issue. I choose to take on debt so I could attend a college that was the best fit for me. As a result, I’m earning a healthy salary that I guarantee you I would never have earned if I went to a large, public university.

Glad it worked out for you. It doesn’t for many people. And, I don’t think that a 17 year old is able to make an educated decision about whether to take on debt or not. I know adults who have been unable to start families, buy a house, pursue the career path they wanted and save for their kids to attend college because of student loan debt. My kids will almost certainly be going to grad school. And school like Oberlin, Kenyon, Grinnell, William and Mary debt free will get them anywhere they want to go.

[Anonymous]

How did you all decide between a general 529 and the prepaid 529? Before I get the snarky responses my understanding is you can purchase semesters so don’t have to do like 80k down for the prepaid option. The general 529 hasn’t had a great rate of return in my opinion.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This post makes me anxious! How do you all save that much? We’ve had many setbacks in the last few years between medical bills and unemployment. Some days I feel like I can barely keep my head above water.

I think more people are in your situation than are willing to admit. They just won't post it on DCUM.

The old adage of putting on your own oxygen mask first applies here. YOUR own retirement funding and overall financial stability is way more critical and important than funding your child's college account. Your kid can get loans. They're for sure not going to support you while you're in retirement, so you better take care of that first.

+1,000!

Loans, community college, work programs, scholarships, ROTC, etc. There are many options to help with costs. Shore up Mom and/or Dad's finances and retirement first and foremost.

Yes!!

[Anonymous]

Anonymous wrote:$0.00.

When my kids were born I sat down and did the math on how much money I would have to save each month in order to pay for their college, accounting for the trending rise in tuition and the force devaluation of the dollar. I literally would have had our family living on bread and water in a shack. It came out to well over half of all our pre-tax pay, every month, every year, with no room for emergencies.

We decided instead to take some of that same money and put our kids into Montessori school, so that they will have a solid foundation of real education and critical thinking, and most of all, be able to educate themselves. College will be something they choose, advance place for, get assistance, and I will help as I can with what I have then.

I don't get paying for Montessori but not college. College is far more important. You sound really selfish. We do live in a shack and happy to if it means a better future for ours.

[Anonymous]

Anonymous wrote:How did you all decide between a general 529 and the prepaid 529? Before I get the snarky responses my understanding is you can purchase semesters so don’t have to do like 80k down for the prepaid option. The general 529 hasn’t had a great rate of return in my opinion.

We did a prepaid at birth when it makes the most sense. We just treated it as a car note as they have payment plans and instead of a new car that we needed, we just did a monthly payment and all tax refunds one into it too. If you pay down sooner you save a lot on interest. If you have an older child, it doesn't make sense when you look at cost vs. value to do prepaid.

[Anonymous]

!

I’m always amazed by parents who won’t let their child make an educated decision on whether they can take on debt. Fortunately, my parents had open and honest conversations with me about the issue. I choose to take on debt so I could attend a college that was the best fit for me. As a result, I’m earning a healthy salary that I guarantee you I would never have earned if I went to a large, public university.

Disagree. Kids at that age do not understand debt, especially large debt. You go where you can afford with the least amount of debt. My spouse went to a no name, no one has ever heard of school and is doing very well. If parents can and are too selfish to save, then there are few options, especially if parents have good incomes and kids don't qualify.

[Anonymous]

With some exceptions (e.g. low income and/or underrepresented minority students), kids who are smart enough to get into a super prestigious school but instead elect to their state school (whether it's due to finances or something else) do just as well professionally as those who go to the prestigious school. There have been studies on this; look it up. If you are really rich and paying for the brand name school is no problem then it's your call, but taking out loans (whether in your name or your kid's), sacrificing your retirement, refinancing your home, etc. so your kid can go to a private college...NO NO NO NO NO.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Nothing. I don't have any extra money.

Same here. Single parent teacher and I am glad I can pay his HS tuition out of pocket.

You've saved nothing for college, but are sending your kid to a private HS?

[Anonymous]

Anonymous wrote:

Anonymous wrote:$0.00.

When my kids were born I sat down and did the math on how much money I would have to save each month in order to pay for their college, accounting for the trending rise in tuition and the force devaluation of the dollar. I literally would have had our family living on bread and water in a shack. It came out to well over half of all our pre-tax pay, every month, every year, with no room for emergencies.

We decided instead to take some of that same money and put our kids into Montessori school, so that they will have a solid foundation of real education and critical thinking, and most of all, be able to educate themselves. College will be something they choose, advance place for, get assistance, and I will help as I can with what I have then.

Dude, I don't think she means "DCUM shack". I think she means actual shack! As in impossible.

I don't get paying for Montessori but not college. College is far more important. You sound really selfish. We do live in a shack and happy to if it means a better future for ours.

[Anonymous]

nothing, hoping for scholarships or they can join the military and get the GI bill.

[Anonymous]

Prepaids do not cover special programs like engineering etc. don’t forget to save additional that it does not cover. It is additional 2k per semester for some programs. Check fine print.